Long term care insurance is an insurance product specially designed to cover future long term care expenses. With this coverage, policyholders are able to protect both their assets and their loved ones, as they will already have resources set aside to afford the care they need.

Addressing your Unique Needs

Because each person’s care needs will be different, LTC insurance can be customized to meet specific preferences in terms of coverage, additional features, and cost. You can choose which long term care services are included in your policy though most will offer comprehensive coverage for all types of care settings.

LTCI is not a one-size-fits-all product. Even though it serves a very specific purpose, you have control over your coverage and you can make it fit to your overall financial and retirement strategy.

What you Need to know about LTCI

Though long-term care insurance is an essential policy to have, purchasing it should not be made in haste. If you want to make LTC insurance to work your advantage, you need to do your homework. Learn as much as you can about LTCi. You can begin with the topics listed below.

How to Buy Long-Term Care Insurance

When you decide to purchase long-term care insurance, it doesn’t mean that you immediately contact an insurance company and give them your money in exchange of a policy. Before you even get to this stage, you need to weigh your options first, shop around, and consider important factors such as your needs, budget, and risk tolerance.


Where to Look for LTC Insurance

You can get insurance for long-term care from different sources and these are:

  • Insurance companies
  • Employers
  • State partnership programs

Before you choose to acquire LTC insurance from any of these sources, you need to weigh their pros and cons, because the level coverage they offer has differences in terms of cost and scope.


Long-Term Care Insurance Costs

The cost of LTCi depends on a lot of factors such as age, location, health, level of coverage, and even the insurance policy. In order to get the best rate, you need to be clear on what your needs are, determine how much of your assets you want to protect, and take time in shopping around.


What Does Long-Term Care Insurance Cover?

LTC insurance covers both custodial and skilled care and can pay for LTC services provided in the home, adult day care centers, assisted living, and nursing homes. Depending on the policy, LTCi can also pay for other services that can be instrumental to the overall quality of care.


Receiving LTCi Benefits

Ultimately, you purchase LTCi in order to receive your benefits in the future. Learn what benefit triggers are indicated in your policy, how your elimination period works, and how to file a claim.


Is LTC Insurance Right for You?

Most financial planners say that you need to have assets amounting to at least $75,000 excluding your home or car, at least $25,000 to $35,000 of retirement income in a year, and the ability to settle your premiums even in the event of a price increase in the future.

Simply put, LTC insurance is a smart choice for you if you have substantial assets to protect, but not sizable enough to withstand the impact of a long-term care event in the future.

However, what’s mentioned is simply a rule of thumb. Remember, long-term care insurance is customizable to fit your situation. At the end of the day, your decision whether to purchase or not should be based on your needs, goals, financial strength, and how much risk you can tolerate.


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