Long-term Insurance

Long-term Insurance Coverage
Designed to cover the care that is usually not covered by normal health insurance, long-term care insurance covers a myriad of long-term services, like custodial, therapeutic or personal care. The care provided can be offered in all kinds of different settings, whether it be the home of the insured, a community-run organization or at various other facility types. Many employers offer long term insurance to their employees as part of a benefits package.

For those who might need help with the basic functions of day-to-day life, like assistance bathing, dressing, walking, eating, relieving one’s self, long term insurance is what to look into for coverage. It has been estimated that about 60% of those older than 65 will require some kind of long-term care at some point in their lives. But age is not the only determining factor for the need for long term care. An unfortunately sizeable number of adults under 64 years of age also presently receive long term care.

This kind of insurance functions by compensating policyholders with a contracted daily amount for the specifically needed services for daily living activities. When obtaining such a policy, an individual has the option to choose between a number of options that provides them with the proper services that they need. The cost of the policy is determined by several factors, like the age of the policyholder, when the policy is obtained, the maximum amount the policy promises to pay per day, and for how long the policy will continue to pay.

Basically there are two kinds of long term care insurance policies offered, both tax qualified and non-tax qualified. The most common kind are the tax qualified policies and they require policyholders to meet certain criteria, like being unable to perform at least two daily living activities for a minimum of 90 days. The non-tax qualified policies mandate that the policyholder’s personal physician go on the record stating that the policyholder needs care for medical reasons. Once these conditions are met the insurance policy will pay out for services.

Long-term insurance can be a lifesaver, not just for you but for your family too. Learn more about this kind of policy by contacting one of our trusted professionals today.