Long-term care insurance has become increasingly popular due to the rapidly growing elderly population and the advanced medical technology that enables people to live healthier longer. People want to feel confident that they can safely stay in their homes for as long as possible and long-term care insurance is giving many that peace of mind.
The majority of people who need long-term care insurance are the elderly. However, many non-seniors who have suffered unfortunate circumstances and need assistance with everyday tasks are also in need of this particular insurance.
Long-Term Care Insurance History
Long-term care insurance came about in the 1970s but was not offered by many insurers until the early 1990s. It was created to enable people in need to afford additional help with daily living that usually fell on the shoulders of other family members. This way family caregivers could hand the responsibility to trained health care aides and nurses to help their loved ones in need.
Features of Long-Term Care Insurance
Because of improved medical technology, the rapidly increasing elderly population will need long-term assistance. Long-term care insurance provides care to a person in need in:
- Their own home
- Nursing home
- Assisted living facility
- Senior day care centers
Long-term care insurance also offers respite care. Respite caregivers are temporary aides that give the everyday caregiver a break.
Considerations of Long-Term Care Insurance
With the increased life expectancy, it is logical to assume that at some point of old age help will be necessary. Elder care facilities as well as senior daycare centers and caregivers for at-home service cost a significant amount of money. It is important to research long-term care insurance policies, and compare company offers. Premiums for long-term care insurance become more expensive the older a person gets. A good age to begin thinking about a policy is 65.
Long-Term Care Insurance Myths
Some insurers will try to say that 40 is a good age to buy long-term care insurance because premiums will be low. However, it is hard to say what will be necessary for care in 30 or 40 years. Because premiums are so low for someone in their forties, insurance companies can spike premiums to cover care costs when they are needed.
Expert Advice
Health care cost expert Kathryn Votava states in an article on Health.com that a nursing home can cost $70,000 a year and an in-home caregiver can cost $350,000 a year. She says that long-term care insurance relieves some of the costs depending on the policy, but it will not cover all of the costs. Policies must be researched before purchase to ensure that the plan is right for the individual. Votava also advises to take inflation into account when comparing policies.
Clark Sarullo - Clark Sarullo is a native of Atlanta, GA and an experienced, professional writer with impeccable work ethic. Her expertise include natural ...
