Eight Misconceptions of Long Term Care Insurance
Getting older is a well deserved point in any individuals life and has the unparralled benefit of enjoying the finer things in life. Nonetheless, a lengthy life takes a toll on both the physical and financial health of our nations senior citizens. Long term care insurance responds to the needs of senior citizens due to the fact that chances are you'll need long term care subsequent to the age of 65. Elderly care is pricey, and long term care insurance is there to help. Surveys show typical costs for a full time nursing service range between $ 50,000 and $ 80,000 per year, depending on if the care is given in a facility or at home (with facility care being the more costly option). A byproduct of the complexness behind long term care are a series of misinterpretations that can deter a senior citizens financial health.
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Misconception One: Medicare will cover me: This misconception is listed first because it is the most prevalent myth. Medicare does cover hospital and doctor costs. However, it's coverage does not include custodial care for seniors with long term health problems. For example, if eating, bathing, or remembering medicines is a problem, Medicare will not cover the needed aid for these unfortunate health aspects.
Misconception Two: My spouse's help is enough for such pressing matters: Your spouse may be able to support your needs appropriately, but this assumption is not assured. For example, you could outlive your spouse, your spouse may not be able to offer constant guidance (typical of Alzheimer's patients), or your partner's aid couldn't care for you in the event that you become physically disabled.
Misconception Three: Long Term Care is for everyone: Long term care is ideal for people who live off an average sized income. Premiums can be costly for low income individuals and those whose income is more than average opt out of insurance coverage because they have the means to pay for services on their own. Further inquiry of both your income and marital standing are important to take into inquiry. Aside from your home possessions, single persons with $ 30,000 or less in assets and married people with $ 80,000 or less in assets most likely can not afford the costs associated with long term care. Still, if you wish to obtain long term care and your assets are less than advised, paying out of pocket and utilizing Medicaid is your best alternative. As for protected assets, consider LTC if you are skeptical about being able to self insure.
Misconception Four: Premiums remain steady: The promise of guaranteed LTC premiums is something that no establishment will supply. Key to their business is that they have the legal right to increase premiums if investment revenues and overall claim costs see fit.
Misconception Five: I should wait until I retire to apply for long term care: Stalling your application for long term care more often than not results in undesirable outcomes. For example, if you apply after you've developed some sort of affliction typically covered by LTC you'll likely not be able to obtain the best rates as you would have had you applied beforehand. In addition, you may not even qualify in general if you put off long term care insurance.
Misconception Six: Long Term Care is the same as nursing home insurance: While long term care covers nursing homes/assisted living, most claim dollars are not spent on these facilities. Most claim funds come from health care in the home.
Misconception Seven: The Elimination Period: The policy does not pay off immediately. It usually takes 90 days for compensation to take place. Once you meet the requirements for benefit qualification you start paying for services from a legitimate service provider. If your unable to do two of the following: bathe, dress, eat, use the bathroom, then you can start getting coverage. These are not the only drawbacks that can commence coverage. Mental incapacities that risk your well-being are also grounds for coverage. The elimination period is not an option either. For example, if you wanted to rely on friends and family for help throughout the 90 days, the insurance provider won't sanction that as having services given. The insurance provider must acquiesce whoever is providing aid.
Misconception Eight: I can not afford the estimate: LTC plans are flexible, and a preliminary price can be altered to bring down the cost. For example, years of insurance coverage or daily benefits can be subjugated to drive down price. The best way to make this item more sensibly priced is to work with a professional financial adviser, as they will help modify the insurance program that is right for you.
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