ESTATE PLANNING AND WHAT IS LONG TERM CARE INSURANCE

• Friday, January 6, 2017
• Category: Estate Planning and Estate Administration

What is long-term care insurance?

Long-term case insurance offers protection against the chance that long-term care will cost more than you can afford. In exchange for your premium, payments the insurance company promises to cover part of your future long-term costs. Long-term care insurance can help you preserve assets and provide access to a range of care options. However it can be expensive so before you purchase a policy, make sure you can afford the premiums both now and in the future. The cost of a long term care policy depends primarily on your age. In general the younger you are when purchase a policy, the lower your premium will be. It also depends on the benefits you choose.

What are the benefits of long-term care insurance?

If you decide to purchase a long term-care insurance there are five key features to consider. First, look at the benefit amount, which is the maximum your policy will pay for your care each day that generally ranges from $50 to $350. Second, know the benefit period which is the length of time your policy will pay benefits. Third, there will be an elimination period to consider. That’s the number of days you must pay for your own care before the policy begins paying benefits. Fourth, examine the type of facilities included. Many policies cover care in a variety of settings including your own home, assisted living facility, adult day care centers and nursing homes. Finally you might want to consider inflation protection. With this option your benefit will increase by a certain percentage each year. It’s an optional feature available at additional cost but, having it may enable your coverage to keep pace with rising prices.

Understandably, many people put off planning for long-term care. Although it’s hard to face the fact that health problems may someday result in loss of independence, if you begin planning now, you may have more options open in the future.

Reference: Mary Ashenbrenner, Philadelphia Bar Reporter, Vol. 45, No. 11, Page 23 (November, 2016)

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