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Long Term Care Insurance

Being prepared for whatever might happen is the reason people secure insurance plans. If you’ve never heard of insurance designed to provide benefits for long term care, now is the time to learn about this type of protection. Here are some of the basics you should know.

What is Long Term Care Insurance?

Also known as LTC insurance, this type of coverage is designed for people over the age of 65 who need help with ongoing care. In many cases, the plans provide resources that offset the costs of nursing home stays, home health support, or adult day care expenses.

How Does It Work?

This form of care insurance is designed to settle expenses related to the medical care of the covered party. Claims are submitted by the agency providing services like monthly nursing home fees, nursing care at home, and help with basics like bathing, remembering to take medication, or helping the patient to eat. All support must be medically related. This is different from non-medical care, which focuses more on general caregiving.

Who Needs It?

People choose to purchase this kind of long term insurance so they can afford help with chronic medical conditions after they retire. Since no one can predict the development of such an illness or if some sort of accident will leave them with a permanent inability to take care of their medical needs alone, everyone should secure and maintain this type of coverage.

The Main Benefits

Peace of mind is a major benefit of this insurance. It means being able to remain at home rather than having to live in a facility. It can alleviate financial stress on the patient and the family if entering a facility does become necessary. Having a trained medical professional on hand also makes it easier to live with an ongoing condition and remember to do whatever it takes to retain a reasonable quality of life.

Different Types of Coverage

Individual care insurance plans provide benefits to a single party. Joint plans provide benefits to spouses, partners, or any two related individuals. Some plans focus on what is known as point of need benefits, meaning they are intended to help with expenses related to a specific condition. Others have a wider scope of coverage and will provide benefits related to multiple long-term health issues.

Why Employers Include It in Workplace Benefit Packages

Many employers offer long term insurance as part of workplace benefits. Those benefits continue after retirement. The decision to include this type of coverage in a benefits package is a smart one. Doing so attracts employees who consider planning for the future important, and provide more incentive to remain with the company for decades.

The bottom line is that long term care insurance should be part of your financial and retirement planning. Even if you are planning to retire in another decade or so, it’s not too late. If your employer doesn’t offer this type of benefit, reach out to an insurance professional. It won’t take long to find a plan that works for you.