Long Term
Care Insurance

Long term care is not just for the elderly. Nearly 40% of people needing long term care are between the ages of 18 and 54. The U.S. Department of Health and Human Services reported in 2008 that nearly 70% of all people age 65 and older will need some long term care before they die. In 2008 American insurance companies paid out $8.5 billion in claims for over 180,000 policyholders.

Long term care insurance is important because today people don’t die of the types of illnesses that likely would have killed them in the past. Instances of Alzheimer’s disease and other forms of dementia are increasing because people are living longer. Long term care insurance enables one to maintain independence and preserve their assets. With families living all over the country it is difficult for them to care for loved ones.

At Set for Life Insurance, we help you determine which long term care insurance is the right fit for your unique needs, and help you find the best rate possible.

• Protect Your Family
  The main reason for interest in long term care insurance is that adults do not want to obligate their children to provide their care. Long term care is really a family problem not an individual problem. For example, people go into nursing homes when the caregivers get overwhelmed and exhausted and are no longer able to provide care in the home. Children will take care of their parents however long term care insurance provides a way to make this care easier.
• Receive a Cash Benefit
  Long term care insurance is a cash benefit. It reimburses for expenses. The type of care is selected by the insured and the family not the insurance company.
• Protect Your Assets
  Long term care insurance helps make sure that you’ll have access to high quality care should you ever need it. Using insurance to pay for care also means that you won’t need to choose between getting the assistance you need and spending down your life’s savings.

The cost of insurance is based upon five factors:

• Demographics
  Age, health, tobacco use and family status. Companies give a discount to married people and to couples living in a committed relationship.
• Benefit Amount
  Benefits can be daily ($200 per day for example) or monthly ($4,000 per month).
• Maximum Benefit
  These maximum benefits can run from as low as $50,000 to an unlimited benefit.
• Elimination Period
  Like all policies (except for life insurance) there is a waiting period between the onset of the claim and when benefits start to accrue. The longer this elimination period, the lower the premiums. The elimination period can be none-benefits start immediately to as long as a year.
• Automatic Increase
  The benefit one purchases today can be adequate today but may not be needed for many years. The automatic increase benefit will raise the benefit, not the premium, every year. Benefit increases are available from 3% to 5%.

Many optional riders are available so one may customize the coverage to one’s specific needs and premium needs. Policies are available on a limited payment basis where the policy may be paid up in as little as ten years. Several companies have policies which can be paid in a single premium.

Many people think their private health insurance or Medicare would pay, but that’s not typically true. Health insurance only pays for doctor and hospital bills. Medicare will cover skilled care for periods up to 100 days, but only if certain requirements are met. If you need care over an extended period of time, you’d have to spend down your assets before Medicaid would kick in, and then, you’d have less choice about the care you receive.

The best time to purchase the coverage is when young and healthy. The premiums are most affordable, and it is simple to qualify. Premiums may be paid by one’s business and benefits will be tax free. The deductibility will vary depending on the type of business (corporation, proprietorship etc.) and the age of the insured.