When many people think of long term care insurance, they think that it is only designed to cover nursing home expenses – but it actually includes a number of other things it covers in addition to nursing homes. Long term care insurance is designed to cover nursing home expenses and can also provide coverage for people with a wide range of conditions including prolonged illnesses like strokes or cancer, cognitive dysfunctions like dementia and Alzheimer’s disease, and degenerative conditions like Parkinson’s disease. While it sometimes covers medical care, it more usually covers custodial care, individual assistance with daily living, for people who require such aid.

For people who are currently healthy, it can sometimes be hard to think of all the possible things that long term card insurance can provide – but you can think of it like the care a parent must given an infant – except the infant is an adult who needs help with the basic daily tasks such as using the restroom, showering, and getting dressed, or helping with the cooking. Long term care can be provided either in your own home, a nursing home or an assisted living community.

Long Term Care: Why Do We Need It?

Thanks to lifestyle changes and advances in medicine, the number of people over the age of sixty-five is expected to double by the year 2050, and even today the segment of the population over the age of eighty is the fastest growing part of the American population.

While older Americans are taking better care of themselves with regular exercise and healthy eating habits, they are still more likely than younger people to suffer from chronic illnesses like strokes or Alzheimer’s disease. In fact, the likelihood of those over 65 years old needing long term care is 40%.

In addition, our culture is growing away from the tradition of taking older family members into the home to care for them personally, a result of dual-income families, children who move far from home, and a divorce rate of roughly 50%. For many elderly people the only option is professional assistance.

Long Term Care Insurance: What to Look for In a Long Term Care Insurance Policy

Long term care can be incredibly expensive. Almost ten years ago the average cost for a year in a nursing home was more than $40,000 and often exceeded $100,000. Today, that cost is even more prohibitive. For this reason, it is wise to consider a long term care insurance policy. The alternative is to rely on Medicare or Medicaid, neither of which guarantees care in all settings.

When shopping for a long term care insurance policy, important things to look for include:

• The Insurer is financial stable. Don’t choose a fly-by-night insurance company – many times you will not need the long term care until at least a decade after the policy is purchased.
• Comprehensive Coverage: Since you won’t know when your policy is written, exactly what your circumstances will be when you need to use it, it’s important to make sure your long term care insurance will cover you in a variety of settings. This way, you will be covered whether you need a nursing home or just a home health aide.
• High enough daily benefits – Since long term care services can easily cost more than $150 /day in most parts of the United States, and soar above $250 / day in major metropolitan areas, you must be aware of what the daily benefit will be, and be certain it will meet your needs.
• Stable Premiums: Since long term care policies are “guaranteed renewable” individual policy holders cannot be given rate increases, but entire classes of policy holders can. Find out your insurer’s history of rate increases, and be wary of companies that seem significantly less expensive than the rest of the market.

In addition to all of these points, it’s a good idea to ask about the claims process when you are purchasing your long term care insurance, so that you can be prepared in the future. As well, knowing the percentage of paid claims can help you determine if the company you are considering is worth the money.

No one wants to spend the final years of their life worrying about money or not having care when needed. By buying long term care insurance before you actually need it, you are protecting the ones you love as well as protecting yourself.