Why Long Term Care Insurance Is Essential

term Care was introduced during the 1970s as along-term care. The simple fact is that Medicare will
specialized form of nursing home insurance, Sincepay for short-term periods of care in the home or a
then long term care insurance has since beenvery limited stay in a care provider’s facility,
expanded to cover a more diverse range of servicesbut only after strict criteria has been meet. Medicare
and caters to people of any age. The large majoritycan pay for long term care but usually only after
of people requiring long-term care are still over themost financial assets of the client have been used up.
age of 65 years but more and more younger peopleThere are a number of providers in the retail
have realized the necessity to have extended healthinsurance market that provide LTC insurance. One of
insurance. For many of the elderly, this required carethe largest carriers of coverage for the individual in
is usually ongoing but long-term care insurance canthe U.S is John Hancock. John Hancock LTC begin
also apply too much shorter-term situations such asproviding LTC coverage in 1988 after having entered
the care needed after an accident or certain typesthe insurance retail market in 1987.
of surgery.There are important issues to consider when looking
The purpose of Long-term care insurance is not toat when you should get LTC insurance. The younger
meet medical bills. That is the domain of mainstreamyou are the less you premiums will cost you. Now
health insurance providers or Medicare. LTC Insurancethe longer you go without a claim the more coverage
is expressly designed to meet the extra costs toyour policy will provide for you, this helps to offset
enable you to live in your own home and continuethat nursing care in the home costs have been
with daily activities in a way that gives the clientincreasing a lot faster than the rate of inflation.
independence and control of their care.If you have a pre existing serious health condition
Many people balk at the need for buying Long-termchances are high that you will not be accepted by
care insurance as they mistake it for nursing homeLong-term insurance carriers. It is therefore prudent
insurance and don’t realize the care can beto make inquiries before these conditions occur
provided for them in their own homes. Home carerather than try to after. When looking for LTC
from skilled nurses can be an uncomfortable subjectinsurance a Comprehensive Policy is the best option
for a number of people. However people are livingas this will cover not only the costs of a nursing care
longer because of modern medicines and differentfacility but those associated with home health care as
types of lifestyles to the previous generations, thewell. When looking at Home care you need to be
number of people over the age of 65 is likely toaware that most providers standard polices only
double by the year 2050, a consequence ofallow for coverage of up to four hours a day, if you
extended life expectancy is the older a person getsthink you may need coverage the policy premiums
the more likely they will suffer from chronic illnessescan increase dramatically.
such as strokes or Alzheimer’s. In America itWhen choosing your insurer then make sure they
is estimated that there is a 40 percent risk for thosehave a good reputation, large amount of assets and
over the age of 65 having to enter a nursing homegood profitability there is nothing worse than seeing
for long-term care.all your health benefits going down the drain because
There are many misconceptions that mainstreampoor management has caused the financial collapse of
healthcare such as Medicare will cover the costs ofyour provider.