Fratello & Fox, P.C.

516.496.0730

ATTORNEYS AT LAW

What is long term care insurance?

             Individuals with chronic health conditions may require long term care (LTC).  LTC can include personal care (bathing, eating, dressing, toileting and transferring), skilled nursing, home health care, hospice, adult day care, assisted living, nursing home care, etc.  LTC insurance is one way of paying for these services.  Other modes of paying for LTC can include privately paying, Medicare (very limited) and Medicaid, if you are eligible.

 

Why might I want long term care insurance?

             If LTC insurance is right for you, it may be a way to preserve your assets and/or allow for Medicaid planning.  Today, people are living longer and a far greater number of individuals will need LTC.  However, LTC insurance is not for everyone.  Two major factors to consider when deciding to purchase LTC insurance are your income and asset levels.  The policy must be affordable both today and in the future.

 

How much will LTC cost?

             Nursing home care costs approximately $12,000 per month and assisted living facilities cost approximately $4,000 per month.  Privately paying a nurse or aide in the home is also very costly.  LTC insurance can be pricey; the premium is based on your age and health, at the time you buy the policy and the level of coverage you select.  The range in pricing is considerable.    

 

Do I need to qualify to receive a LTC insurance policy?

             Before a policy is issued, a LTC insurance company will look at your current health and health history to determine if it will insure you.  If you have a pre-existing condition, you may not be able to obtain LTC insurance or the policy may not pay for treatment pertaining to the condition.

 

Are all LTC insurance policies the same?

             All LTC insurance policies are NOT the same.  You must carefully read any insurance policy you are considering and make sure that you understand the terms.  Know what benefits you require before you commit to buying the policy.  For example, many policies include an elimination period whereby you must wait a certain amount of time to receive benefits after first medically qualifying for the start of benefits.  Most policies have a daily and total cap in benefits which may cause you to have additional out-of-pocket LTC costs.  Some policies are not indexed for inflation. Health care costs continually increase and it is beneficial to have a policy that increases the benefit amount over time. 

 

             Know what you want and can afford before you purchase a LTC insurance policy.  Do your research and do not be afraid to ask questions.  If you do not understand the terms, do not sign the policy and if you have any questions, speak to an attorney.  

 

Dated: 9/2006

LonG TERM CARE INSURANCE Q&a

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