Why Buy Long Term Care Insurance?

Before I discuss the reasons for buying a policy, it’s important to make sure you understand what these plans cover. They are a type of health insurance, but they are designed to cover the costs of facilities or businesses that assist disabled people with daily living activities. This is something most medical plans don’t cover, at least not for a longer period of time and regular use. Some medical plans, such as Medicare, may cover short-term or intermittent care. However, the benefits expire after a short time.

Here are some important things to note about long-term nursing care:

  • Your care may come from a home health care facility, a nursing home, a residential care facility, or even an adult day care facility. It is for disabled people who cannot take care of themselves. Some insurance policies only reimburse certain types of care.
  • Even though we call this kind of care, nursing care, it doesn’t always come from a registered nurse. It may come from a device that helps patients with certain activities. The type of care you receive depends on what you need.
  • Usually we associate the need for this kind of help with seniors. However, many people under the age of 65 also become disabled and may require some form of nursing assistance.
  • Basic Medicare benefits only cover short-term or intermittent care, not long-term care!

How is long-term nursing care paid for?

Sometimes the bills are paid by Medicaid, but this program is different from Medicare. In some states, it can be very difficult to qualify. Often, a state resident will have to spend most of their wealth to get Medicaid assistance. In other words, if you don’t have long-term care coverage, you or your family will end up paying the bills.

What should you know about nursing care plans?

Long-term care insurance (LTCi) can pay for all or part of your nursing care bills. There are many different types of policies and levels of coverage, so you should try researching many different plans and companies before you buy! Some things that may vary are your wait time, daily limits, types of care, and much more. Nor are they the only way to plan for long-term nursing care costs, and you should explore other solutions as well.

There are some government incentives to encourage people to purchase a nursing care policy. If you buy a qualifying policy, you may be able to deduct the premiums from your income tax. This can give you a tax break and an extra incentive to buy coverage. It also reduces the actual cost of your policy.

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Today, many states are also trying to encourage residents to purchase nursing home policies. They’re relaxing Medicaid’s qualifying rules for people with qualified health insurance.

Keep in mind that qualifying rules are different for state plans than they are for the IRS tax deduction. In addition, not all states have yet adopted this legislation. A good long-term care insurance agent or retirement planner may be able to help you if you don’t want to research this on your own.