With so much of the population living longer than at anytime before in history, it’s more important than ever to invest in long term care life insurance. This insurance can help cover the costs of nursing homes, assisted living facilities and in some cases home care. This type of insurance is great to have in addition to your other insurance policies, since no other type of policy will cover just what this policy will cover.
For example, if your home catches on fire your homeowners insurance will pay to have it rebuilt or repaired, the same for your auto insurance. Regular life insurance will pay a specified death benefit when you die and health insurance will take care of medical bills, but what happens if you’re not really sick? You just get older and infirm and unable to take care of your day to day needs? This is where long term care life insurance can really be a lifesaver.
What would happen if you didn’t have this type of insurance? Could you afford to go into a nursing home? Would medicare help? Having this type of insurance to pay for your day to day care should be a critical part of your overall insurance and financial planning.
Many times you can just add a rider on to your existing life insurance policy that will cover long term care needs. Talk to your insurance agent and find out if this is an option with your existing policy. Most of the larger companies do include this option.
If you go this route make sure you fully understand what it means. If you add this rider it means that the insurance company is paying out your death benefit early to help you with your day to day care needs. That could be a problem since your death benefit won’t be as high as it would be without this additional insurance.
If you choose to get a stand alone care policy your rates can vary significantly based on many factors. The first factor is the age of the person to be insured. The older you are when you get it the higher your premiums will be.
The higher you want the daily or monthly benefit to be, the higher the premiums will be. That just makes sense, the insurance company will charge you more if you want to get more.
The longer the period of time you want to receive the benefits, the higher the premium. Again, this is kind of a no brainer, the longer the insurance company has to pay the more you will have to pay.
The deductible for this type of insurance policy means that you will pay your own living expenses for a certain amount of time. The longer you pick up the tab, the lower your premiums will be. Usually the longest amount of time you can pay will be 120 days, though it does vary from one company to another.
Taking care of your financial future means taking care of the needs you’ll have in the future. There are a couple of ways you can go about getting long term care life insurance, either as a rider to an existing policy or as a stand alone policy, talk to your agent to find out which policy is best for you.