Government statistics show that nearly half of all U.S. citizens will require long term care at some time during their lives. Because long term care is extremely costly, insurance companies have developed insurance to cover this type of treatment.
Long term care insurance covers both medical and custodial services. These services can range from at-home care, including assisting someone with daily personal and household chores; to day care services at a facility; to assisted living residences; to nursing home care. The degree of care is based on the current requirements and condition of the person who is in need of long term care.
Individuals can buy long term care policies early in life. The insured person pays monthly premiums in anticipation of requiring extended care at some point later on. If, or when, a person needs to avail himself of extended care, the expenses are covered wholly or partially by the premiums paid to the insurance company through the years.
Many people assume that long term care insurance is only needed for the elderly, but this isn't always the case. Younger people often require extended care or some level of assistance when they are debilitated due to an accident or chronic illness. This type of insurance will cover the needs of qualifying clients regardless of age.
Setting up long term care insurance before services are needed allows people to pay more affordable premiums. Several insurance companies build in anti-inflation clauses that will maintain set premiums for the policyholder's financial protection. Though insurance rates are sometimes considered high, costs for medical and custodial care continue to escalate.
While Medicare will cover the cost of long term care in the US, recipients and their spouses have to deplete all of their assets before this program will kick in to cover the costs. Therefore, an added advantage of long term care insurance is that it safeguards assets, allowing a family to maintain its standard of living, even through a costly medical crisis. Considering economic hardships facing most families today, this critical protection could be one of the most compelling reasons to look into this insurance.
