Healthcare for Long-term Patients: Is this Insurance Right for You?
Long-term care insurance is not right for everyone. For a small percentage of the population, this coverage is an affordable and worthwhile type of insurance. Determining whether or not long-term care insurance is right for you won't be the only task at hand; looking for scams will also be a concern.
As you get older, the need for assistance in your everyday life increases. Whether it is in-home care or residing in a nursing home for a few months you will most likely need some way to pay for these types of services. To maintain long-term care insurance, you must pay for them every year until death. Many policies are canceled by policyholders that are on fixed incomes and are simply unable to pay for the increasing premiums as they get older. If the only funds you are receiving were those from Social Security or SSI, then it would be wise to not purchase a policy. Also, if you find that everyday purchases and paying for utilities make you stretch your budget to the limit, you probably should stay clear of this policy. This type of policy is only right for someone who has significant assets they want to preserve for their family, remain independent, or just to spare their family the expense of a nursing home bill.
Comparing policies can prove to be difficult because every company is selling a different combination of benefits and coverage. Many companies offer to pay a fixed amount for each day you receive care, while others will cover a percentage of the overall cost of care or supply a specified amount. Beware of these types of policies unless they offer inflation protection. You see, if they do not account for the increasing cost of nursing home costs, then you are stuck with a policy that does you no good.
Just like a standard healthcare plan, you will have to receive services at designated locations. If you go outside of this network they will simply refuse to pay for any care that you receive. If you have any type of mental disease or nervous disorder then don't expect many carriers to accept you (the one exception is Alzheimer's). There are more restrictions on this type of insurance than any other health insurance.
If this type of policy is right for you, please make sure that the company is reputable. Many individuals thrive on the fact that not many people will make an informed decision when it comes to purchasing long-term health insurance. Be sure to read the fine print and find out everything you can about the policy before committing to a company and a long-term health insurance plan.