Long-term care insurance (LTC) is made for people who need help in carrying out daily activities such as bathing, wearing clothes and eating.
based on the U.S. department of health and community service, about half of the American population aged 65 in 2015 will need long-term care services.
Hip fractures, strokes, or other serious diseases will make it impossible for us to do daily activities
This type of assistance over time is quite expensive, but long-term insurance can help overcome this problem.
In 2016 the cost of care according to the genworth financial survey, insurance companies and living allowances, the country's average cost for long-term care services was around $ 18,000 for adult care, $ 44,000 for living facilities, and $ 46,000 for domestic help, around $ 82,000 for general nurses and around $ 92,000 for private nurses.
The problem is that long-term care insurance is expensive. Many people don't know how it works; what they know from reading the news is that there are many people who lose their coverage because the premium costs are increasing rapidly. So they don't want to buy it.
Before you make a decision, you must know all the facts. We will give you an introduction to the important things that you should know about long-term care insurance in this section.
Coverage consists of a variety of service providers, in general long-term care insurance includes home care, rest care, adult care, domestic help and nurses.
All have expertise in caring, ranging from nurses and doctors, personal officers, such as assistance in using the toilet, work, speaking, physical therapy, rehabilitation, treatment of alzheimer's disease and dementia.
Who should buy long-term care insurance?
People who do not have assets do not need to buy long-term care insurance because they are eligible to buy medicaid insurance.
People who have a lot of savings for certain purposes are also not required to buy this insurance.
This insurance is an option that needs to be considered for anyone who wants to get the benefits someday - people who have a lot of savings will soon run out due to expensive long-term maintenance insurance costs.
The problem is that they cannot afford to pay the premiums.
To get policy approval, you must meet medical requirements. Certain diseases can make you not accepted by insurance companies, such as alzeimer, parkinsonism and AIDS.
If you already have a caring helper, you will not be accepted, as if you cannot buy car insurance for the accident you are experiencing.
Other serious conditions such as heart disease or cancer, you will not be rejected but will increase the premium price.
The cost of premiums depends on the insurance provider's policy, women can be charged more for long-term care insurance than men because they tend to have a longer life.
When to buy insurance?
Experts have different opinions for the best time to buy insurance, and there are no definite answers.
If you buy at the age of 40 it means you will be more qualified to get this insurance and the premium is lower, but that also means you will pay premiums for years longer.
If you buy at the age of 60, you will not buy insurance until you need it, so you will pay a premium for a few shorter years - but that also means you will be a little difficult to qualify.
If you have a family with a long history of illness, ignoring it means you will need long-term nursing insurance, but as long as you haven't experienced signs of the disease, you should buy long-term care insurance.
Qualify to claim insurance
The inability to do two of the six daily activities - such as taking a shower, taking care of yourself, wearing clothes, eating, urinating and walking - will usually make you unfit for claim.
The health care provider will state your condition in coverage, and in some cases, the insurance company will need information from the doctor they choose. Then, you will fulfill the period of elimination and after that you will be ready to receive the benefits.
Long-term maintenance contracts generally compensate policyholders for fees based on bills submitted rather than paying providers directly. Every 30 days, health care providers will renew if you still need long-term care.
Termination of policy
Long-term care insurance policies are guaranteed to be renewable if you pay premiums on time, your policy cannot be lost when filing a claim or experiencing illness. However, your policy can end in several ways, namely:
- You cancel when making coverage
- You do not pay the agreed premium
- You waste your health
- You died