Not all elderly need long term care insurance, but it does not mean everyone should overlook this protection during their retirement years. The recent survey and studies on the cost of care in the United States are upsetting, giving the impression that people would suffer paying for exorbitant LTC services throughout their senior life. Seniors could stay in nursing homes and other LTC facilities for the average span of two years, while those with chronic health issues and cognitive disorder would take five and more years of stay. Most long term care policies offer numerous features and options of services that consumers find difficult to select and understand. The following are what most LTCi policiescover: The Daily Benefit This refers to the amount you wish to receive on a daily basis, and it has direct effect to the price of your premium †the higher the daily benefit means more expensive premiums. You must assess how much daily benefits you need to avoid overpayment. Take time to research on the costs of LTC services in your community or state to get a clearer picture on how much daily benefits you will need. The Length of Benefits The average stay in LTC facilities is two to five years, so it is a wise decision to keep your benefits within that time period. However, you must look at other factors such as your family’s longevity and health history, and your personal health background as well. There are few companies that offer unlimited benefits, but expect the premiums are extra expensive. The Elimination Period Elimination period is commonly called a â€deductible†which is the same as other types of health and life insurance. These are usually the number of days the policyholders, from zero to 365 days, would pay for their care through out-of-pocket expenses. You reserve the right to choose your elimination period depending on your financial capacity to pay the preliminary costs. The Inflation Protection This is the most important features in LTCi because it increases the daily benefits. Some experts recommend 5% inflation to keep the premiums controllable and the benefits increasing as much as possible. However, you must assess yourself how much inflation rate you can afford, because it will surely affect the amount of your premiums. Guaranteed Renewable This means the policy shall continue provided that you are paying the premiums and comply with the company’s policy. The coverage should continue regardless when the company stops offering the same kind of policies. This feature does not ensure the premiums will not increase its rates or the premiums itself. Levels of Care the Policy Covers Most LTC policies may cover skilled and non-skilled care. Registered nurses and health care professionals provide skilled care services such as supervision on medications and therapy. Non-skilled services are generally assistance with activities at home to help the patients continue their normal lives. This means policyholders may enjoy the flexibility of using the benefits for nursing care and home care. Some policies may include the coverage for your family members or anyone you wish to provide care for you.
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