The idea of managing illness at old age all alone can be mentally and pocket draining, reason why long-term care insurance becomes necessary for older people.
Long-term care insurance is a necessary policy every older citizen from 65 years and above must buy. Especially, older citizens suffering from some illness.
While you plan your retirement, you need to also plan for cases when you may not be able to take care of yourself again.
As we know, aging reduces the body’s ability to fight illness. So when the body becomes overwhelmed by illness related to aging or any other ailment, your long-term care insurance may be your saving grace.
Suppose you have elderly parents or relations or want to take care of yourself at old age. This article will give you a detailed rundown of all you need to know about this coverage.
What is long-term care insurance?
It is an insurance coverage that provides home care or nursing home privileges for older people with degenerative or chronic illnesses.
While it can be tax-deductible, older people aged 65 and above who can afford this coverage stands at an advantage because it offers more care options than Medicaid.
Also, watching your loved ones struggle to pay your medical bills and care at old age may not be so wonderful.
So, choosing an option that saves everyone the stress of going broke due to old age-related illness is a step in the right direction.
Long term care insurance and other options
Medicaid has been so helpful to thousands of families in the United States. It has come to the rescue of families seeking health coverage at low cost.
Families and individuals with a low-income threshold and older family members have benefited from this program. However, it is government funded, and it has limited options.
On the other hand, long-term care insurance coverage is a private policy. Though it is quite expensive and out of the reach of low-income earners. Still, it is a better option because it offers more privileges for the policyholders than Medicaid.
In another sense of it, there are other alternatives to look at when you can’t afford the excessive premiums of long-term care.
They may not have the exact policies and coverage though, critical illness insurance can suffice.
Another side to it is adding up riders to your policy. So, having a well-structured insurance to care for you at old age can replace the idea of paying expensive long-term care premiums.
What does long-term care insurance cover?
Your plan to buy this coverage will not be complete if you do not know what it covers extensively.
First, since it is expensive, you expect its coverage to go all the way out yeah? Truly, it does.
This coverage takes care of a lot but your options can be determined by the insurance company you purchased from. So take your time and thoroughly shop for quotes to get the best you can.
That said, typical long-term care insurance offers you the options of a visiting or live-in nurse and caregiver. Also, you can have private therapy sessions or decide to stay in a good care home.
The coverage gives you the privilege to request daily sessions with either your nurse or a caregiver.
So, while fighting to overcome your illness, you go about it with peace of mind and the relieving thought of not being a liability to anyone.
Perhaps you decide to afford all these from your pocket, the expenses may wipe out all your savings in no distant time.
Can younger people buy long-term care insurance?
The long-term care coverage is not rigidly for only 65 years old and above. Younger individuals can purchase this coverage as well.
Besides, it is way cheaper for people not yet in their 60s and still planning their retirement. Only that you have to keep paying for premiums you may not use for a very long time.
And at old age, you may not even get sickly enough to require care homes and nurses.
What can disqualify you from buying long-term insurance?
Generally, this policy as we said, is not only made for the old buddies. Younger generations who can afford the premiums can utilize the opportunity because it will be cheaper.
That notwithstanding, some situations will disqualify you from having this coverage. But disqualification is not the end of the world, you can seek alternatives.
Meanwhile, these situations can cause disqualification:
- Having a criminal record and being convicted can disqualify you from having this coverage.
- Substance abuse. Whether it happened earlier in your life or it’s currently ongoing. Once they notice you have been an addict of some sort, you may not be allowed to buy this insurance.
- People above 85
Older people above 85 years old may not qualify for this coverage. Except you find an insurance company that does not mind.
- Some illnesses
Suffering from diseases like Alzheimer’s, or some chronic diseases may disqualify you from purchasing this insurance.
Other types of alternatives to long-term care insurance
When you discover that the long-term coverage is not for you and critical illness insurance, as mentioned above, did not favor you either. Then you can seek the other mentioned alternatives below.
An annuity is a form of a legal contract between you and your insurance company stating that you have to deposit a certain amount of money in a savings account for a given period. After a while, the company begins to pay you back the money. It may be immediately or in the future. It all depends on the agreement.
Life insurance coverage with a long-term care rider
You can buy suitable life insurance that will accommodate a long-term care rider. So, you must discuss it well with your insurance company and make sure it is doable.
If you think you can save up for rainy days, why not? Say you want to go with this option, you can intentionally be putting aside a lump sum of money just for this purpose. Private home cares are expensive, so be sure you are up to it.
Summarily, while you enjoy your youth and think about retirement, also, make plans for profitable insurance coverage for when you become old and feeble. Your intentional planning will help you become comfortable and enjoy your old age.