5 Basic Things About Long Term Care Insurance
If you are considering the purchase of a long term care insurance policy, you should have a clear understanding of all the aspects of this type of policy starting with the basics. Complete knowledge will help you to take right decisions.
1. What is Long Term Care Insurance
This insurance is different from your regular health insurance. It covers the expenses of long term care services like, nursing homes, adult day care centers, assisted living facilities, professional health aides etc. You may receive the care at home or in a facility depending on your choice and your condition.
2. How Are the Benefits Paid
The policy has pre-determined amounts for every type of care in a particular care setting. Once the policy holder is declared eligible to receive benefits, these are paid out on a daily basis. When a person is certified that he or she cannot perform at least two of the activities of daily living, that policyholder becomes eligible to receive benefits.
3. Factors Which Determine the Premiums
You have to pay a monthly premium for the long term care policy that you have and that depends on certain conditions. Your premiums may rise over the years.
- Your age and health condition when you buy the policy
- The maximum daily amount that the policy will pay per day
- The maximum benefit period of the policy
- The lifetime maximum amount that will be given by the policy – which is, maximum benefit period multiplied by the maximum daily amount
- Any additional riders you take with the policy
4. When Can You Not Buy a Long Term Care Insurance Policy?
The approval of these policies is subject to underwriting. Insurance companies may reject applications if the applicant is suffering from some serious medical condition or is already taking long term care services. You may be able to avoid the medical underwriting if you are applying through a group.
5. Be Aware of the Terms and Conditions
Every insurance company has their own rules and regulations. Know about your options clearly before buying a policy and also the terms laid down by the company for every element of the policy.