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Long term care insurance varies widely from policy to policy and state to state. The fact is, long term care insurance policies can be expensive, and taking out premiums gets more expensive as the elder ages.
For instance, while a no-frills policy for a 65-year-old can cost $2,000 a year, the same policy taken out by his 75-year-old neighbor can cost as much as $7,500 a year. Conversely, a 45-year-old taking out the same no-frills policy may pay just $500 a year. Obviously, the sooner you take out a policy, the easier it will be on your pocketbook.
An excellent resource for information on long term care insurance is the Long Term Care Campaign, an organization that is helping lead the national dialogue on various long term care issues.
You need to remember the following rules when shopping for long term care policies:
- If you seek long term care home insurance, you MUST get the widest coverage possible. For example, be sure to look for a policy that covers custodial care at home. Many policies cover just skilled nursing or, as insurers define it, "needle" care and physical therapy in the home, but not custodial care. Custodial care, however, is exactly the kind of care that most people need, and for long periods at that, if they have chronic illness or infirmity. Protect yourself: Read the fine print of all policies.
- Consider that some policies cover care provided in the home and also care that is provided in licensed community care facilities such as adult day care centers. You may want to get this kind of policy. We'll say it again: Read the fine print of all policies.
- Many people want a long term care policy that covers homemaker or housekeeping services. Many policies cover these services if they are provided by an agency home health aide in addition to other personal assistance tasks. Once again, protect yourself by reading the fine print of all policies.
- Some insurance companies offer disability plans for home care benefits. You may want one of these policies. Disability coverage requires that the insured make a claim that he or she is "disabled" as defined by the policy. This usually means that the insured cannot perform without assistance specified activities of daily living, such as cooking or cleaning, as listed in the policy. Disability coverage requires that the insured is certified as disabled by his or her doctor. Insurance companies also often have their doctor examine the insured to certify level of disability. Finally, be sure to read the fine print of all disability plans for home care benefits.
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