What You Should Know About Long Term Care Insurance
Aug 18, 2010 / By: Cheryl K. David, Estate Planning Attorney / Category: Elder LawWith Americans living longer than ever, and with the cost of assisted living and nursing home care on the rise, the question of how to pay for long-term care weighs on many peoples’ minds. Most of us are not wealthy enough to pay the entire bill out of pocket, but qualifying for Medicaid may not be an option for some seniors. If you’re in this situation, a long-term care insurance policy might be a solution.
Similar to health insurance, long-term care insurance allows you to buy coverage in advance for the nursing home, assisted living, or even in-home care you anticipate needing as you age. Here are the basic considerations:
- What type of policy do you need? There are two basic types of long-term care insurance policies: comprehensive and non-comprehensive. Comprehensive policies cover all types of long-term care. Non-comprehensive policies are much more limited. For instance, you can choose a nursing-home only policy, or a home-health only policy.
- How much daily coverage will you need? This is the “benefit amount”, and it will vary depending on the type of facility you plan on entering, as well as the other means you have of paying for your care.
- How long do you want to receive benefits? This is the “benefit period”.
- How long can you wait before using your long-term care policy? The period of time between purchasing your policy and the start of your benefits is called the “elimination period”. Generally, the longer the elimination period, the more you can save on your policy premium.
As a rule, the younger you are when you buy long-term care insurance, the lower your premiums will be, so it pays to plan ahead. It’s a good idea to shop around and seek advice from an experienced professional before deciding the amount and type of coverage that’s right for you. In addition to providing your Estate Planning needs, The Law Offices of Cheryl David can also help you plan for your Medicaid and Long-Term Care needs. Call us to schedule your appointment: (336) 547-9999.
The Law Offices Of Cheryl David is a member of the American Academy of Estate Planning Attorneys.
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