What is long-term care insurance?

Long-term care insurance is different from HMO health insurance and PPO health insurance in that it provides for both medical and non-medical care in the event of any chronic condition that leads to a disability.

It’s estimated that 12 million adults will need long-term care by the year 2020. Of those, 10 percent may be there at least five years. Long-term care is not inexpensive. In fact, today long-term care may cost as much as several thousand dollars a day and can reach six figure sums every year.

Care covered through long-term care insurance may include hospice or respite care, assisted living or nursing home care, skilled nursing care, physical therapy, and adult day care. Group health insurance plans may cover some of these benefits but rarely will they be able to cover all of them. Basic family health insurance policies and Medicare are not designed to pay for this type of care, and the expenses can be so great that they can reduce an individual’s assets quickly.

Every long-term care plan has different criteria that must be met before benefits will be paid, just like any other insurance policy. The plan also has an elimination period before benefits can be paid. The elimination period refers to the amount of care you must pay for out of pocket, somewhat like a deductible. Finally, the plan will have a benefit period, which may range from a year to the subscriber’s lifetime. When the benefit period expires, the elimination period will be reset.

Long-term care insurance may not be the right choice for everyone. However, if your family tends to have a longer life expectancy or if you have a family history of chronic or disabling health conditions, you may wish to seriously consider purchasing long-term care insurance.

Affordable health insurance plans and long-term care insurance can help protect your financial future.

Source: Los Angeles Health Insurance
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