Taking Personal Responsibility -
the Long-Term Care Insurance Option
Long-term care insurance is a form of health care insurance. Coverage is purchased by paying a monthly premium that depends on your age and health at the time you purchase the insurance. People with long-term care insurance do not have to rely on taxpayers, nor do they have to spend down their personal assets, to access good long-term care services.
Many excellent policies are available at premium rates that generally range from $800 to $2,500 per year (or about $67 to $210 per month). People ages 50 to 64 pay lower premiums than people ages 65 and older.
Long Term Care Insurance
Purchasing long term care insurance is an excellent way to plan ahead for the personal care and assistance you may need in the future. Covered benefits are paid from a chosen policy to help with long term care services that are not covered by health insurance – such as assistance with eating, dressing and bathing. These benefits can help individuals protect savings and assets, retain control over their plan of care and reduce the impact on family members. Long term care insurance plays an important role in a comprehensive financial plan.
LifeSecure Insurance Company is dedicated to providing long term care insurance solutions that help individuals and families plan for the funding of qualified long term care expenses. LifeSecure offers long term care insurance that is easy to understand, yet comprehensive in its coverage. Covered expenses for care can be received at home, through community based programs, in assisted living communities and nursing home facilities.
In January of 2008 HCAM entered into an exclusive relationship with LifeSecure Insurance Company, a Brighton, Michigan based long term care insurance carrier to offer the LifeSecure plan to all HCAM members. LifeSecure insurance coverage is also open to all Michigan residents. For more information please contact Haywood Portfleet & Associates at (616) 554-9960.
What to Look for in a Policy
When you are ready to select a policy, it is important to seek the advice of a licensed insurance agent who is trained in long-term care insurance products to assist you with your selection. Below are some elements of coverage to discuss with your agent.
Scope of Services Covered: The best products pay a benefit that can be used in a wide variety of long-term care settings, including homecare, assisted living and skilled nursing. Be wary of policies that restrict your coverage to only one type of care or pay a benefit for only certain ailments or illnesses.
Daily Benefit Amount: This is the amount the policy will pay per day for care. Consider the average cost of care per day in your area and decide how much you want covered by insurance and how much you think you can pay out of pocket. Policies typically cover expenses of about $100 per day, but policies can be tailored to cover greater or lesser amounts.
Benefit Period: This is the length of stay your policy will cover. Lifetime coverage is available, although many people choose coverage periods between 2 and 5 years, since nursing home stays are rarely longer than this period.
Deductible/Elimination Period: This is the length of time you must pay for care yourself before the policy kicks in. The longer the deductible period, the lower your premiums.
Inflation Protection: It is important to buy either simple or compound adjustment inflation riders with your policy, especially if you are a younger buyer.
Finally, make sure any policy you buy is guaranteed renewable - meaning your policy can't be canceled for any reason other than non-payment of premiums. With the help of a qualified agent, comparison shop among policies. Many offer unique incentives for buying their product such as discounts if both spouses buy policies and lapse protection to keep your policy from being automatically canceled if you accidentally forget to pay a premium.
The AARP offers a free guide you might find helpful called "Before You Buy, A Guide to Long Term Care Insurance." You can obtain a copy by writing to the AARP at "AARP Fulfillment," 601 E. Street, NW, Washington, DC 20049.