For Seniors
What about Long-Term Care Insurance?
The
decision to buy long-term care insurance is a very important financial
decision that should not be rushed.
Long-term care (LTC) is the array of medical services provided to people with chronic or prolonged illnesses, disabilities or cognitive impairments. In addition to nursing home care, the term refers to a variety of situations and services, including home health care, continuing care retirement communities, hospice care, and more. Medicare does not cover LTC. Neither do Medicare supplements or managed care plans.
Before purchasing LTC insurance, you should carefully consider your potential long-term care needs and how you might pay for them. You have three options: self-pay, LTC insurance, and Medicare, which is also called Title 19. (Title 19 is a state and federal program which may pay all or part of the costs for those whose income and assets are very limited.)
To determine whether LTC insurance is a suitable purchase for your situation, you need to assess your objectives, needs, and finances. A person with few resources and a modest income, but who wants to stay off Title 19, approaches the purchase differently from a person with a greater assets and a larger income.
Once you determine that long-term care insurance meets your needs and is affordable for you, you must consider the many choices that are available. You will want to have adequate coverage from a reliable agent. Find out exactly what types and levels of care will be covered. How much will the policy pay per day of care? Will the benefits be adjusted for inflation? How long will the benefits last? What conditions must be met before benefits will be paid? How long do you have to wait before pre-existing conditions are covered? Is Alzheimer’s covered? What does the policy cost per year? (This will depend on the coverage, as well as your age at the time of purchase.)
Take your time. Do not be pressured into buying a policy. Don’t be misled by advertising. Know your policy before you buy. Complete the application carefully. DO NOT pay with cash. Do not cancel a current policy until you have have the new policy in hand.
If you have questions or need help evaluating policies, you may want to consult with family members, a financial advisor, attorney, or a volunteer health insurance counselor associated with SHIIP (Senior Health Insurance Information Program). For a SHIIP representative who can provide free and confidential assistance, call 1.800.351.4664