An Expert Guide to Choosing the Right Long-Term Care Insurance Policy

How to Plan for Your Long-Term Care Needs

Are you planning to take out a long-term care insurance policy to protect you from high costs in the future? If so, you’ll need to be sure that you’ve selected the right policy for your needs.

Choosing the Right Long-Term Care Insurance

So, how do you get started with choosing a provider? And how can you be certain you’ve made the correct decision? In this expert guide, you’ll learn everything you need to know about making an informed choice.

What Is Long-Term Care Coverage?

Long-term care insurance policy is designed to cover all eligible custodial and personal care expenses that help you to stay healthy and happy at home or the cost of receiving ongoing care in a nursing home or assisted living facility. These expenses will not usually be covered by Medicaid or Medicare plans, and therefore it’s certainly worth exploring whether this type of policy is right for you.

Exploring the Different Options

Nobody wants to have to receive long-term care in their old age, but nobody can predict the future. Anyone could require ongoing healthcare as they get older and if you have the right long-term care insurance coverage you won’t be put in a difficult financial situation if and when this happens.

There are many different insurers providing this type of coverage, and it’s important to compare companies and the coverage they can offer before making a final decision. Not all policies are created equal and with standard and hybrid coverage available, as well as different premium levels it’s important to take everything on board before you choose.

Advantages and Disadvantages

The primary advantage of taking out a long-term care insurance policy is that you’ll be covered for nursing home or in-home care should you need it in the future. On the downside though, it can be expensive, particularly if you’ve waited until you’re 65 or over to make your purchase.

If you’re aged between 55 and 65, you can save money on your purchase but it’s important to remember that coverage rates for this type of policy will fluctuate over time.

How Do I Select the Best Coverage?

As there are lots of options to choose from picking the best one for you can be difficult. Usually, you should start by working out the maximum amount of coverage you believe you’ll need every month.

Typically, this ranges from just a few thousand dollars a month up to over $10,000 monthly depending on how often and how much care is likely to be required. You can then subtract the amount you’re able to pay out-of-pocket and the resulting amount is how much coverage you’ll have to purchase.

Choosing a Joint Insurance Policy

If you’re married or have a domestic live-in partner, you may be able to make a saving on your premium by buying a joint long-term care insurance policy. It’s worth looking into this possibility when planning for your retirement.

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