When Thinking About The Long Run, Think Long-Term Insurance
Long-term care insurance is a product that can be purchased in order to help with health needs over an extended period of time. Typically the benefits under this type of care insurance are those that are not covered with usual health insurance plans and policies offered by employers. Some examples of individuals who can reap the benefits of long-term insurance would be those who are unable to perform basic daily activities such as bathing, getting dressed, eating alone, or walking.
This form of coverage can be offered as either a tax qualified policy or a Non-tax qualified policy. For a tax qualified LTC policy, an individual must be unable to perform at least two daily living activities, and must require care for at least 90 days. Tax qualified policies are also non-taxable.
For a non-tax qualified LTC policy, the individual’s doctor can specify that long term care is needed because of the absence of the ability to perform at least one daily living activity. Though the requirements on this type of policy are less strict, it is possible that an individual or family might face a significant tax bill as a result of these benefits.
There are many benefits included in long term care coverage. Facilities such as home care, assisted living, adult daycare, respite care, hospice care, and nursing homes are generally covered under these plans. If home care coverage is purchased as a part of LTC coverage, the benefits will also include an in-home nurse, caregiver, housekeeper, therapist, or companion if needed.
One of the best benefits of long term insurance is the peace of mind knowing that family member’s won’t have to deplete savings account for the care that an individual requires. Though governmental programs do cover the cost of some of these benefits for those who might not be able to otherwise afford them, they do not cover in-home care, which is preferable to many.