Health Insurance Articles
How To Obtain Insurance Coverage For Long Term Care
2010-08-24
Long-term care insurance coverage is designed specifically to cover the expenses associated with long term care medical care and skilled nursing care costs when the insured can not perform 2 or more of the activities of daily living such as eating, bathing, ambulation, or dressing. This insurance provides a measure of control and the preservation of dignity; these services can be performed in the privacy and comfort of the home rather than being confined to the sterile and impersonal environment of a nursing home. Long-term care insurance is not a consideration for only the wealthy but for everyone. Statistics allege 70% of persons 65 and over will need long-term care at some point in life.
Long-term care insurance offers considerable flexibility and choices regarding care options, benefits, and leeway in where the medical care services will be performed. The first step in obtaining long term care insurance is to contact a responsible and reputable health insurance agent or broker long before retirement. The optimum age is 40 years old, but 55 years old is the average age for obtaining this coverage. Premiums are less expensive when there is less risk of needing care. Expect rates to jump significantly after the age of 70 years old.
In obtaining long term care coverage; a prospective policyholder can design a customized policy to meet long-term care needs. The average benefits include comprehensive coverage for both in-home care and facility care. The average cost of nursing home care is $150, while home health care is approximately $112 per day; therefore the policy should have a daily benefit of $150 with an inflation rider to freeze the exponentially increasing costs of medical and nursing home care. The long-term care industry is state regulated and determines what companies can sell selected products. Admittedly, there are more than 100 insurers who provide this coverage, but most of the policies are written by 15 or 20 major insurers.
Another option is to purchase long term care insurance through the employer. The Federal government and many public and private companies recognize the value of this indemnification and provide policies with discounted group rates. Employers do not typically pay for this long-term care insurance coverage, because this is considered a voluntary benefit, one that is available but not mandatory.
The best way to find the most reputable and reliable coverage is to consult an insurance agent or broker, the state board of insurance. Public employees and public retirees and their families can contact the US Office of Personnel Management for information on group availability.
