Long Term Care Insurance



Definitions:
Long Term Care Insurance



Long Term Care Insurance Definition:


Long-term care insurance is designed to cover the costs of nursing home care, which can be several thousand dollars each month. Long term care is usually not covered by health insurance except in a very limited way. Medicare covers very few long-term care expenses. There are many plans and they vary in costs and services covered, each with its own limits.



There are many long term care insurance plans available in the marketplace. Each offers a unique combination of benefits and pricing structure, making side-by-side comparisons difficult. You need to get below the surface and compare details. And don't be fooled by other plans claiming to be the Federal program — this is the only Congressionally authorized long term care insurance program for current and retired Federal government employees and their families.

One reason many people hesitate at buying long term care insurance is because they think it covers only nursing home care and nursing home care is a very uncomfortable topic for most people. But, due to advances in modern medicine and changes life-style, the number of people over the age of 65 is projected to double by the year 2050. As people age, they are more likely to suffer from chronic illnesses such as strokes or Alzheimer’s. Statistically, Americans over the age of 65 face a 40% risk of entering a nursing home for Long Term Care services.

Long Term Care Insurance Before you buy a new policy, make sure it is better than the one you already have. Even if your agent has switched companies and wants you to switch too, carefully consider all changes. If you do decide to switch, make sure your new application is accepted before you cancel the old policy. If you cancel a policy in the middle of its term, most companies will not return any premiums you had paid. If you switch policies, pre-existing conditions clauses may have to run again, and you may not have coverage for certain conditions for a period of time.

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