Long term care Insurance, also known as LTC or LTCI is the insurance for providing medical or personal care service outside the hospital. The service can be in a nursing home or at the home of the insured itself. At present this type of insurance is seen only in the United States and the United Kingdom. This is a great blessing for people who are suffering from chronic illness or physical disability.
Why do you need a LTC policy?
About 60% of the people in the United States who are over 65 need some kind of long term care because of disability. No other type of insurance covers these risks. This disability does not come under medical condition even though some kind of medical attention is also required. So health insurance does not cover this. People with disability in their old age may not like to remain at home with their children and cause inconvenience to them. People in these conditions may require long term service from nursing homes and hospitals. The savings, in most cases, may not be sufficient to pay the costs. So, long term care (LTC) insurance policies is necessary.
How does LTC policies work?
You have to apply for a long term care insurance policy in the first place. If the insurance company is satisfied with information provided by you the company approves and ask you to pay the premium. Once they receive the payment you are eligible for the long term care insurance cover. Normally there is daily limit for expenses. When a claim arises the insurance company reimburses the expenses. The daily payment is limited to the maximum amount permitted daily. There is also a waiting period after taking out the policy to become eligible for reimbursement.
What is covered under a LTC policy?
Long term care insurance covers almost everything a disabled person requires as assistance. You can claim reimbursement for skilled nursing care and rehabilitation training at home or at a nursing home. Payments made for daily bathing, dressing and all the expenses for feeding are reimbursed. Attention for all those conditions for which continued personal care is required is paid for. The criterion is not for treatment for cure, but care for physical impairment. Cares for conditions like Alzheimer’s disease are covered by a LTC policy.
How much do you need?
The requirement of cover in long term care insurance depends on several factors. One important factor is the location where you live. In the big cities and their suburbs cost for care is higher. So if you and your elderly loved one are living in a big city the cover should be much higher. Comparatively, the costs are lower in if you are not living in a big city. If you can bear a part of the costs for care from your pocket much lesser cover is required. After all, it is not for sure that the need for care would arise at all. You may end up paying nothing from your pocket while paying a smaller premium too. Your ability to pay the premium must also be taken into account.
The cover provided under a LTC policy is a blessing. Make full use of it.