Facts and Misconceptions of Long Term Care

Getting older is a well deserved point in any individuals life and has the unparralled reward of enjoying the finer things in life. However, a long life takes a toll on both the physical and financial well being of our nations senior citizens. Long term care insurance responds to the needs of senior citizens due to the fact that chances are you’ll need long term care following the age of 65. Elderly care is pricey, and long term care insurance is there to help. Studies show common costs for a full time nursing service range between $ 50,000 and $ 80,000 per year, depending on if the care is given in a facility or at home (with facility care being the more pricey option). A byproduct of the intricacies behind long term care are a series of myths that can deter a senior citizens financial health.Misconception One: Medicare will cover me: This misconception is listed first because it is the most widespread myth. Medicare does cover hospital and doctor costs. However, it’s coverage does not include custodial care for seniors with long term illnesses. For example, if eating, bathing, or remembering medicines is a dilemma, Medicare will not cover the needed aid for these unfortunate health aspects.Misconception Two: My spouse’s help is enough for such pressing matters: Your spouse may be able to support your needs appropriately, but this theorization is not proven. For example, you could outlive your spouse, your spouse may not be able to offer constant direction (typical of Alzheimer’s patients), or your companion’s aid couldn’t look after you in the event that you become physically impaired.Misconception Three: Long Term Care is for everyone: Long term care is ideal for people who live off an average sized income. Premiums can be costly for low income individuals and those whose income is more than average opt out of insurance coverage because they have the means to pay for services on their own. Further inquiry of both your income and marital status are important to take into question. Aside from your home possessions, single persons with $ 30,000 or less in assets and married people with $ 80,000 or less in assets most likely can not afford the costs associated with long term care. Still, if you wish to obtain long term care and your assets are less than advised, paying out of pocket and utilizing Medicaid is your best option. As for protected assets, consider LTC if you are skeptical about being able to self insure.Misconception Four: Premiums remain constant: The promise of guaranteed LTC premiums is something that no company will furnish. Key to their business is that they have the legal right to increase premiums if investment incomes and overall claim costs see fit.Misconception Five: I should wait until I cease working to apply for long term care: Stalling your application for long term care more often than not results in unfavourable outcomes. For example, if you apply after you’ve developed some sort of disorder typically covered by LTC you’ll likely not be able to obtain the best rates as you would have had you applied earlier on. In addition, you may not even qualify in general if you put off long term care insurance.Misconception Six: Long Term Care is the same as nursing home insurance: While long term care covers nursing homes/assisted living, most claim dollars are not spent on these amenities. Most claim funds come from health care in the home.Misconception Seven: The Elimination Period: The policy does not pay off immediately. It usually takes 90 days for compensation to take place. Once you meet the requirements for benefit qualification you start paying for services from a legitimate provider. If your unable to do two of the following: bathe, dress, eat, use the bathroom, then you can start getting coverage. These are not the only disadvantages that can commence coverage. Mental impairments that risk your safety are also grounds for coverage. The elimination period is not a choice either. For example, if you wanted to rely on friends and family members for help through the 90 days, the insurance provider won’t recognize that as having services provided. The insurance company must approve whoever is providing aid.Misconception Eight: I could not afford the price: LTC policies are adjustable, and an original price can be recalibrated to bring down the cost. For instance, years of protection or daily benefits can be subdued to drive down expense. The best way to make this product more affordable is to work with a reputable financial mentor, as they will help modify the insurance plan that is right for you.