Wednesday, March 19, 2014

Why Purchase Long Term Care Insurance

Long-term care insurance protects your retirement and maintains your family’s well-being, allowing you to chose where and how you receive the care you need.

Without a Partnership Policy, individuals have these typical options to pay for Long-Term Care:
Out-of-pocket
Can quickly wipe out savings.

• Transfer assets
Medicaid planning may allow you to qualify for Medicaid quicker than spending down assets on your care. Downsides of Medicaid planning include the loss of control of your assets.

Rely on the charity of friends and family
Most people prefer the independence offered by paying their own way or having long-term care insurance. A Partnership Policy offers an extra level of protection against losing life savings to pay for the cost of care.

According to America’s Health Insurance Plans (AHIP ), informal\ caregivers, such as family andfriends, provide about 70 percent of all long-term care. You should discuss with your spouse, children or friends what assistance they would provide if you became sick or injured and needed care.
There are many combinations of benefits available for long-term care insurance, and many types of policies.
Here are some helpful important terms.
Reimbursement - Most common policy type. Your policy or certificate will pay benefits after you receive and pay for eligible services. For ongoing care that regularly exceeds your policy benefit, such as nursing home care, arrangements can often be made to have the insurer pay the provider directly. The coverage pays for the lesser of the expense you incurred or the dollar limit of your policy.

Indemnity Policy - The benefits are paid on this policy without regard to the actual amount of the expense incurred. Instead, the insurance company decides if you are eligible for benefits and if the services you receive and paid for are covered under the policy. Once you have paid any amount for services covered in the policy, the insurance company pays the full daily benefit to you directly.