Long term care insurance is an insurance product sold in the United States and United Kingdom. It takes care of the the cost of long-term care beyond a predetermined period. It covers care generally not covered by health insurance, Medicare, or Medicaid.
Long term care is required by those who cannot perform the basic activities of daily living and are generally not sick in the traditional sense. Dressing, bathing, eating, toileting, continence and walking are activities of daily living.
Coverage extends to home care, assisted living, adult daycare, respite care, hospice care, nursing home and Alzheimer’s facilities. If home care coverage is purchased, long term care insurance can pay for home care, often from the first day it is needed. Depending on the policy benefit maximum, it will pay for a visiting or live-in caregiver, companion, housekeeper, therapist or private duty nurse up to 7 days a week, 24 hours a day. Without long term care insurance, the cost of providing these services may quickly deplete savings.
If you are uncomfortable relying on your children or family members for support, you will find that long-term care insurance could help cover out-of-pocket expenses. Premiums for this policy may be eligible for an income tax deduction. Your age will determine the amount of deduction. Generally, benefits received from this contract are excluded from income.
Medicaid provides some of the benefits of long term care insurance but generally does not cover long term care provided in a home setting or for assisted living. This policy is very important especially if you plan to live really long. However, it’s also very expensive. So do you do without
No, take your time to shop for quotes from reputable providers and you’ll make savings that might run into a few thousand in premium dollars over a few years.
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