Owning a Long Term Care insurance policy is a must for those who want to live a more comfortable and worry-free life after retirement. Not all realize how important a LTCi policy is until they have reached the time when they can no longer take care of themselves and will just depend on others’ help to get themselves through every single day.
A LTCi aids the insured individual by providing him medical and non-medical services that he might need in the future. This includes providing him with nursing care facilities, therapy and rehabilitation, and other medical facilities.
One reason that might be preventing some Americans to consider buying an LTCi policy is the price. This kind of insurance policy is quite expensive and a portion of your income must be allotted to pay the premiums. But with the continuous rise in the costs of LTC services, cheaper alternatives are being developed and promoted by the local state governments and private insurance companies.
To get better deals and better inflation protection, an LTC policy is better acquired at a young age. Those who purchased a Long Term Care insurance policy at age 61 and below will have an annual compounded inflation protection of not less than a rate based on changes in the Consumer Price Index (CPI), or a yearly compounded inflation protection of not less than 3 percent.
In an effort to help and encourage the local residents, some states offer Long Term Care Insurance Partnership Program which is a joint effort of the participating states’ local government and some private insurance companies. This kind of Long Term Care insurance policy lets you apply and qualify for Medicaid once the partnership policy that you acquired has been fully exhausted. It also offers Dollar-for-Dollar asset protection and some levels of inflation protection.
Since a Long Term Care Insurance policy is not cheap and requires you to allot a big amount of your budget, you might want to remember some tips in choosing and buying your Long Term Care insurance policy:
1.Be sure that you purchase your Long Term Care insurance policy from trusted and credible insurance agents or companies. It is wise to know first the financial background and ratings of the company to be sure that they can afford to pay your Long Term Care insurance policy by the time that you need it.
2.Do not be afraid to ask about some complex or complicated insurance policy terms that may boggle or may not be too familiar to you. It is important that you understand and that the policy is well-explained to you to avoid misunderstanding and confusion.
3.If your Long Term Care insurance policy is tax-qualified, the policy must abide with the Long Term Care insurance tax deduction rules and regulations. A tax-qualified LTC insurance policy requires that your condition needs at least 90 days of care, and that a licensed health care professional is available to give a “plan of care” to the insured.
With a large portion of your budget and savings at stake, it is important to be aware and to clearly understand the advantages and disadvantages of having a Long Term Care insurance policy. Be sure that the policy you will buy fits your future needs so that you can use and fully maximize its benefits.
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