Wednesday, August 25, 2010

Why Plan for Long Term Care Insurance

Long term care insurance is a type of health insurance offered to those people who are in need of help along with their activities of daily living like eating, toileting, transferring, dressing, continence, bathing etc. Millions of people across the globe have realized the actual benefits of LTCI and they are selecting this health insurance as soon as possible because they know they may require LTCI in future. It is estimated that around 13 million people in USA require long term care, among them 40 percent of people are of old age. Now with these statistics, you might have come to know why it is essential to purchase LTCI immediately just before your retirement. According to government of US they have revealed that it is always a better idea to purchase LTCI in prior when you are younger so that you can take the benefits when you grow older. It is suggested that you should purchase LTCI at young age because at that time the premiums are low in comparison to old age because the risk is more in old age than young age.

So, let us come across about the things that are required to qualify for long term care insurance. Today you will notice that most of the LTCI policies sold are Tax Qualified. This is the type of policy in which you will only become eligible when the practitioner will rectify that you are unable to perform at least 2 activities out of 6 activities of daily living (ADL) for at least 3 months. Without the report of practitioner you will not be able to take the benefits of this policy. Apart from this if you have suffered from any cognitive impairment such as Alzheimer’s then also you will be eligible for this policy.

There can be numerous reasons behind purchasing insurance; some people have insurance for their car so that they can claim insurance for damage of their car, similarly people insure their homes, life, boats, health etc. But purchasing a LTCI is something different because with this insurance policy you will be able to maintain a level of independence for your family and for yourself. It is specially designed not only to protect you but also your family so that you don’t become a burden on your family.

Ironically, people nowadays want to equip themselves to meet any unexpected situation. No one in this world knows that what is going to happen in the next second, anything can happen to them and at that certain point of time you may not be in the condition to resolve the issue. For instance in car accidents, you insure your car to keep your car protected from any damages and scratches. If some damage happens to your car then you don’t want to pay for it, but instead of it you pay monthly payment for premiums and leave everything on insurance company to take care of the damages. Similarly, long term care insurance is also designed not only to protect you but also protect you from losing of your assets you have worked a long period of time to establish.

Today most of the young generation people don’t think about their future and it is the biggest mistake they are making in their life. If you don’t plan about your money management now then definitely you will face difficulties when you grow older. So, it is recommended that you should immediately purchase a long term care insurance policy today without making any delay. If you plan and prepare yourself properly then definitely you will have better future and life ahead.