Long Term Care Insurance Myths and Misconceptions

The impact of long term care is obviously high risk, but many people still neglect this issue and wait for the day they are aggravated with expensive bills or their assets depleted before they think of smart ways to offset the problem. Although some are aware of the importance of insuring one’s care, they are often disheartened with the price of long term care insurance. Long term care insurance is pricey, and what else? This is what all people know, period. Unfortunately, there are misconceptions attached to long term care insurance that push people away from insuring their health.

You Won’t Get Paid Right Away. This is not true. Maybe some mistakenly purchase elimination period without knowing that they would pay the number of days stipulated in the policy before the insurer pays next. The elimination period can range from zero, 90, 180 to 360 days. Remember that the longer elimination period means lower premiums, but before you decide in going with longer waiting period, you should see first if you could pay the bills on your own. If you are not confident in paying it independently, then purchase zero or shorter elimination period.

Insurance for Long Term Care Covers Only Nursing Home Care. False. Most policies today are called comprehensive which means they cover broad range of services from various long term care settings. Here’s what your policy can cover:

  • Skilled care or personal care in your home including assistance for daily living activities which may include dressing, bathing, and toileting. Homemaker services can be also covered such as meal preparation and housekeeping
  • Hospice care
  • Respite care
  • Alzheimer’s facility
  • Nursing home
  • Assisted living facilities

Some companies also offer policies that pay for the insured’s family member or loved one. Many policies pay for the services of a care coordinator, a nurse or social worker in your community, who will help monitor the insured’s care and specific needs. These two services are always optional.

Buying policy in later years equates to lower premiums. The price of premiums is also based on your age at the time of purchase. Old people normally have failing health the reason why they are expected to pay more expensive premiums than the younger ones. If you have health issues, you are going to pay expensive premiums. Therefore, it is important to determine the right age you should begin your long term care insurance. However, most financial planners recommend buying LTCi in your mid 50s – the age not too early to receive care and not too late to acquire certain illnesses or disability.

To wrap it up, there are so many misconceptions about long term care insurance aside from the abovementioned. In fact, the American Institute of Public Accountants said the problem is rooted in the complexity of LTCi policies and, as result, people are confused as to what these policies mean. Moreover, there are other ways to finance long term care such as partnership policies and the upcoming CLASS Act.