Long Term Care Insurance
Long Term Care insurance policies are designed to cover expenses linked to long-term conditions. Generally, this is associated with the assistance people need as they age, but it can include costs that accrue for people with chronic medical conditions and disabilities. Care insurance over a long period is not provided by standard health insurance policies.
More than half of people over the age of 65 require some level of assistance. Some may be functional enough to remain in their own homes but need help buying groceries or bathing. Others may need to relocate to assisted living facilities. These services are expensive, and because disability isn’t always considered when calculating a retirement plan, they can quickly eat into savings.
Because of its nature, Long Term insurance isn’t immediately useful for people who are young and healthy, but because it helps deal with issues that become difficult with age, it is recommended to look for coverage at least around your 50s. Like with any insurance, it is easier to qualify for robust long term care insurance before you are considered at risk. Some employers now offer optional long term care policies, which adds the benefit of having a group plan.
There are two major categories of long term care insurance: traditional and hybrid. Traditional policies are standalone and have been available for decades. They are direct and uncomplicated, providing coverage for an agreed-upon benefit period and a monthly amount of money the policy will provide when needed. Optional benefits can be added to tailor the policy to your needs.
Hybrid long term care insurance will merge with an existing policy, such as life insurance, with virtually all of the same benefits of a traditional policy. The main deciding factor in choosing one over the other is personal preference and investment plans.
Long term insurance protects individuals against costs that may arise at a point in their lives when they are unable to compensate, easing the burden on their savings, pensions, and families. It benefits anyone who wants to be secure even when they are at the most vulnerable period of their lives.