Nursing Home Insurance

It is a distressing fact that even with a rise in the number of people living in assisted care facilities, there is little awareness about the importance of elder care insurance. Most people just depend on their savings, investments and social security to fund their needs post retirement. This is why many voluntary organizations are clamoring for an increase in flexibility and friendlier terms and conditions, besides campaigning for increased awareness about this type of insurance. Individuals should know that long care insurance goes well together with health insurance or Medicare. It can be in the form of a home care insurance, nursing home insurance, elder care insurance, assisted living insurance or retirement home insurance. If you have purchased home care insurance, it will pay for a nurse, a therapist or anyone who assists you in the role of a caregiver. In this way, you can get good quality care that would otherwise come very expensive. You need not be dependent on your family members to look after you. Without adequate insurance long term care, the expenses of receiving these services may rapidly exhaust yours and your family’s savings.True, you can receive benefits under Medicaid, but it does not cover the costs that a retirement home insurance covers namely expenses over an extended period. Thus, it is imperative that you purchase nursing home liability insurance. Yet it is commonly seen that people delay purchasing long care insurance until their retirement age approaches. Note that this can significantly increase your premiums. 

Some care needs to be taken while purchasing such a policy. You should request at least a couple of nursing home liability insurance providers to submit their quotes. (Long-term care quote is often abbreviated as LTC quote, so do not be confused by their terminology). One can find this information online. Secondly, just ensure that you are purchasing nursing home insurance policy that allows for tax qualification. Not just tax deductions on your premium, but also nil taxes on benefits should be available too. Else, you risk facing a huge tax bill from the income tax department. Most insurance firms sell tax-qualified polices. Yet there are specific advantages of policies that do not qualify for taxes. For instance, fewer limitations on when an individual can receive reimbursement. Your agent should guide you on this detail. It is advisable to ask for guidance on this point; you should weigh up the benefits and disadvantages of both. Commonly, people are unaware that such an option exists. Thus, before you purchase long care insurance, you will need to do some research on possible tax bills you may face versus more benefits of a non-tax qualified assisted living insuranceLike with all other insurance products, one should be regular with premiums, else face cancellation. Most companies reimburse benefits after you have submitted your claim and submitted bills. You will be covered only for care received in the country. There are separate terms and conditions for expenses incurred in a foreign country. Those who are contemplating foreign travel should bear this point in mind.

Companies take into account as many as six crucial factors when determining nursing home insurance rates such as an individual’s age, benefit amount, duration for which they provide cover, waiting period from the time of submission of a proof of required medical care until the time when reimbursement begins, guard against inflation and health evaluation. They require a person to have this policy for certain duration, say a year, before they are eligible to claim any benefits. There are discounts on couple or group policies. Couples need not only refer to spouses, but any two people who satisfy norms for existing jointly in a steadfast relationship and divide fundamental everyday living expenditure. Due to increased awareness, more and more people under the age of 65 are opting for this policy.

When you receive a long term care quote, you need to understand that often what you pay is what you get. Take your friends’ or family’s assistance in understanding different policy terms and conditions. You will need to select convenient payment options, as most companies will offer you various options. It s wise to purchase this insurance while one is still earning or else it becomes difficult to allot money for insurance long term care. An individual will need to work out whether he or she will be able to pay premium payments from existing funds once he or she retires.

You are eligible to receive benefits when you are not able to perform one or two of daily activities without significant assistance. These include eating, wearing clothes and undressing, getting up, getting in or out of a chair or a bed and going to a toilet. A doctor will qualify that you need to be shifted to an assisted living center for better care. This insurance will then cover all your out of pocket expenses. Note that an individual need not necessarily be over 65 years of age to be eligible for such benefits. In fact, a large number of people receiving benefits under this policy are less than 65 years. Thus, it is wise for individuals above the age of 40 to start considering this policy.

Furthermore, you should note that even otherwise fit individuals who suffer from psychological disorders like Parkinson or Alzheimer’s can receive benefits for care they need under this policy. Expenses for a visiting or residing person, domestic help, a shrink or a personal nurse are reimbursed. You can also ask your employer if they cover you under any such policy. 

You do not have to pay for nursing home liability insurance if in future you will not accept Medicaid assistance. If you have limited resources and cannot afford the premiums over the lifetime of your policy, you should not purchase this insurance. On the other hand, if you have just one source of revenue- social security, you should not purchase this insurance. Typically, you should not have to spend more than 10 percent of your income on this policy.