LTC and Rising Health Care Costs

As health care costs continue to mount and life expectancies continue to grow, funding long-term care continues to be a major concern for millions of Americans, especially those 65 years of age and older.

Choosing long-term care insurance is a very personal decision that requires individuals to closely examine a number of factors in their lives, including: their family health history, personal financial means and dependent relationships.

Do I Need Long-Term Care Insurance?

If the times comes when an individual is unable to perform daily living activities like dressing, bathing and eating, long-term care insurance can compensate for the services of nursing homes, in-home caregivers and assisted-living facilities.

Long-term care insurance covers expenses for individuals who are diagnosed with a chronic illness like diabetes, multiple sclerosis, Alzheimer's disease and Parkinson's disease.

In most cases, standard health insurance policies and Medicare do not pay for long-term care expenses tied into these illnesses. Medicaid will provide limited long-term care benefits; only following the time an individual's assets have been consumed.

Many experts note that due to the fact that these costs are increasing, interest in long-term care insurance is on the rise.

Tips for Considering LTC Insurance

There are a number of tips to keep in mind when considering whether or not you're a good candidate for long-term care insurance.

First, investigate LTC care, especially if you do not want to depend on other people to support you if you're away from work and you want some flexibility in selecting the form of long-term care services.

Look at individual insurers to determine whether or not they show a history of increasing rates for LTC coverage. You can also check with your state insurance department to determine how your state of residence regulates rate increases.

When shopping around for long-term care insurance, obtain as many quotes as possible so that you have a selection of coverages with which to choose from. Be sure to ask the agent/s you talk with as many questions as possible so that you clearly understand what you are buying.

Look at pre-existing conditions and they could impact you with a long-term care policy.

These conditions that you have prior to apply for insurance may be excluded from coverage. Also, for some insurance policies, age 60 is a marker that invokes a rate increase. With that being the case, it may be beneficial to acquire your long-term care policy prior to reaching your late 50's.

Another tip to remember is that you should not rely on Medicare or Medicaid to take care of your long-term requirements.

Medicare typically pays for a small percentage of nursing home costs, Meantime, Medicaid pays for long-term care services, however only if you meet federal poverty guidelines. The selection of care facilities can also be very limited.

Another item to put away in your memory bank is that tax breaks are available for qualified long-term care insurance policy premiums. The benefit payments obtained under like policies are tax-free.

Finally, be alert to advertising indicating that Medicare is linked with a long-term care policy. Medicare does not endorse nor sell long-term care insurance.