What are the pros and cons of having long term health insurance? - AgingCare.com

What are the pros and cons of having long term health insurance?

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Had anyone experience having to use long term health insurance for a loved one.

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In some countries (Germany, Japan?) everyone is required to buy their equivalent of LTC insurance.
Unless you're destitute, you can afford to buy it. Prices are cheeeeep when young. If you're unaware and wait until age 50 or 55 it will cost more. I got my policies before age 50, about $2000/yr, I pay for 20 yrs then have another small policy that kicks in to pay that premium. Best part is, when I do pass away, all my premiums are paid back to my beneficiaries (not the interest) if I don't use the benefits. I have 30 and 180 day elimination period (2 separate policies) that stack. I have no lifetime max. I don't know if they offer these policies anyone, I had to pass a physical and take a complicated memory test. But I at least loked into it, compared plans, and am paying my premiums.
Hey this should be taught in every school. Very important.
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Pros:
It is an investment that secures financing future long-term care expenses thus providing you leverage that allows you to protect your assets and leave a legacy to your loved ones(http://en.wikipedia.org/wiki/Long-term_care_insurance). Moreover, It allows you to maintain independence and quality of life even in the event that you can no longer care for your self and it gives you control over your choices of care and settings giving you and your family peace of mind.
Cons:
It is not a one-size fit all product, so depending on several factors, long-term care insurance may not be the best fit to you. Also, according to ltcoptions/, if you do not have enough funds, you may lose your policy in the event of rate increase. The most common reason why people refused buying it is because of its use-it-or-lose-it policy so in case you never needed care, you have wasted all the money paid in premiums.
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Pros- you can keep your assests safe for passing on, you get a better choice of nursing facilites because you can show them you can pay for 3+ years, your kids don't have to worry about how they are going to manage.
Cons- cost, you can't always get insured when you realize you want it,you have to qualify (meet activity of daily living requirements) to actually use it, it's insurance-you may never use it
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Do not have person al experience with LTC policies apart from doing assessments some years ago and one instance of a hospice patient who desperately needed 24/7 in home care and the company delayed the approval for the two weeks until he died so they paid $0.
My personal experience is with disability insurance through an employer I can personally attest to the nightmare we endured. Payment was denied for a year then when approved a lump sum was paid at the begining of the second year and monthly payments started. bear in mind this is taxable income so the double payment durint that year bunmped up our tax liability. The benefit was only allowed for two years as the insurance company designated it a mental health benefit as my husband also had a mental illness issue which had never stopped him from working. The curent claim was for a physical disease. They also insisted he apply for SSDI. They employed one of the law firms that specialize in getting SSDI. Surprise he got it first time no trouble in a few weeks. The ins co then deducted those benefits from his monthly payments. They would also have deducted the benefits from another policy we had paid for for many years out of earned income had we told them about it. This is a well known company who are still doing business and were later investigated for fraud. They paid the huge fines and have gone merrily on their way. I think but don't know that they spun off the LTC and operated it under another name
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Imagine being unable to care for yourself for a long period of time, not being able to do the activities of daily living. This is what long-term care insurance is for, the cost of care nowadays can be very devastating financially, emotionally and physically. If you have long-term care insurance, you won't have to worry where, when and how you will be taken cared of. It secures financing your future long-term care expenses. The only cons is that long-term care insurance has a use-it-or-lose-it policy, so if you stayed healthy for the rest of your life, you have just wasted money paying for the premiums. However, there are products other than the traditional ltci, and these products offers you the option of having to claim your benefits even if you were not able to use your long-term care benefits. If you have the resources and you can keep it, then you should definitely get one.
It is important to seek the help of an insurance agent or a long-term care specialist and choose from the best companies who has been in the long-term care field for a long time.
You may view the list of some of the top long-term care insurance companies here:
http://www.infolongtermcare.org/ltci-learning-center/top-long-term-care-insurance-carriers/
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One reason why people don't purchase long-term care insurance is because they might die first before they can enjoy the benefits. No one can tell what can happen in the future and you're right, it's a gamble to buy this insurance product.

In my opinion, it is definitely a must-have for people who will require long-term care for an extended period of time. The cost of long-term care is steadily rising nowadays and without coverage, you might end up exhausting your funds or becoming a burden to your loved ones. The cost of a nursing home can go as high as $86,000 annually while an assisted living facility will cost you around $43,000 annually.

With the help of long term care insurance policy you can receive comprehensive coverage for assisted living facilities, nursing homes and CCRCs as confirmed. This is highly recommended for people who have assets to protect and will most likely need long-term care for an extended period of time.

It's best to consult an expert first in order to find out if long-term care insurance is for you or not.
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I think Long Term Care insurance is a must-have. It gives people options. Unfortunately in my mother's era it was not a coverage that people knew of & she does not have it. Generally,services that are covered under Long Term Care ins include Home Health, Assisted Living and Nursing Home care and sometimes transportation costs (to Dr appts & Adult Day Care). As far as home health care, a lot of times the agencies that accept "Private Pay" (which includes those that have long term care policies) cases may have a better selection of aides as Medicaid cases usually just pay minimum wage. Also long term care coverage can protect your assets as a person would not have to dip into retirement funds to fund their care. Rule of thumb would be to take the coverage out sooner than later so age 45-50 is prime time to get a good policy at the lowest rate. Rates increase sharply the older you get. As far as long term insurance claims, normally you have to pay for services upfront & get reimbursed by the insurance company by submitting a claim - normally the ins companies provide forms for completion to document services rendered. You may have to periodically also submit proof of payment for services. This is not that bad because claims are usually reviewed on same date each month - so if the claim forms are filled out correctly you can expect reimbursement around the same time monthly. Some providers will bill the Long Term care ins company directly so that may be an option. Normally in order to start the claim there has to be an in-home assessment by a Nurse which is set up through the insurance company and also the insurance company will send out a form that the covered person's Dr has to complete & either (based on the policy terms) the person has to require assistance (as defined by the policy) w/2-3 Activities of Daily living (usually, Bathing, Dressing, Toileting, Transferring, Continence) or the person may have Cognitive Impairment (as defined by the policy) that will trigger coverage. There are normally daily or monthly maximums based on the type of care and a policy maximum. Contacting the ins company will allow a rep to go over the policy & benefits. Hope this helps.
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My mother had long term health insurance with a rider that once in a nursing home she would not have to pay anymore premiums. She was in the nursing home a little over 4 years before she died. She received more in benefits from the policy than she had paid premiums in on.

My step-mother had a long term care insurance policy and it was helpful for her care at home.

Right now, my dad is benefiting from his long term care policy at home with 24 hour care and will soon be moving into assisted living.

The only con I can see in it is if you die before you need it or died shortly after activating it, but that is the gamble of insurance.
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