Can You Pay More For Long Term Care Insurance?

By Author: Cynthia Clarke
Total Articles: 18
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Who works for more than half of his life only to want to work some more after retirement just so he can fund his long term care (LTC) needs or a loved one’s? Everyone who is currently active at work and earning a substantial amount of money should give some thought to an indemnity long term care insurance policy if he aims to be financially free someday.

Residents in all regions of the country are constantly reminded to plan their LTC as the cost of care is expected to go higher in the coming years. In 2025, the country’s average LTC costs are going to double before these quadruple in 2030 say financial experts.

Young members of the workforce are advised to study their long term care insurance (LTCI) policy options so that they can preserve everything that they’ve worked hard to accumulate. Now if they choose to follow a different course, they are free to do so.

However, they cannot expect every single LTC plan to provide them exactly the same coverage that an LTCI policy offers.

For example, if an individual’s plan is to self-insure or to pay for in-home ...
... care or nursing home care using his own financial resources, then he should only expect a year of LTC. In the event that he would require ongoing care, he will either have to loan money or turn to Medicaid which is not a very good idea.

Borrowing money will help a person avail quality LTC services but when he is done with his life, it’s the family that he leaves behind who will shoulder his debts. Medicaid, on the other hand, is basically designed to fund the health care needs of the poorest in society. It will only provide LTC coverage to middle-class Americans who can meet its income and asset requirements.

In case an individual qualifies for Medicaid, he has to understand that it won’t be able to accommodate him instantly because many nursing homes and other LTC facilities have dropped out of this government health insurance program due to its scarcity of funds. You will have to wait in a long queue of Medicaid beneficiaries.

Planning with Indemnity Long Term Care Insurance

Insurance companies selling LTCI policies inarguably offer the best options. Their products allow people to receive care in their preferred LTC settings with minimal expense to none at all.

However, LTCI buyers have to first recognize their future health care needs and budget limitations so that they will not end up buying the wrong coverage.

Indemnity policies are worth studying, albeit expensive, as these promise extensive (LTC) coverage and financial protection. Anyone with this type of policy will be able to receive the complete amount of his maximum daily or monthly benefits regardless of his actual cost on care. All that he’ll be asked to do is to obtain care from an LTC setting that qualifies under his policy.

Indemnity long term care insurance policies allow people to freely manage and spend their benefits in the manner they deem appropriate. If you think you are financially equipped to buy this kind of product, contact your LTCI adviser.

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