Long Term Care Insurance – Do I Really Need It?

Are you getting older and have sufficient money in the bank to pay for your long term care needs? If so, then you probably do not need to get Long Term Care Insurance. However, most baby boomers are not blessed with an unending supply of cash in the bank to pay for long term care without having their cash flow supplemented by some other source of financial assistance. This is where Long Term Care Insurance comes into play.
If you fall into the category of Americans facing retirement that do not have a huge supply of cash in the bank, then you may want to consider long term care insurance to help you cover the expenses of growing old and needing some to help take care of you.

Long Term Care – What Is Covered?
Each and everyone of us have things to do to get us through the day like: brush our teeth, take a bath, cook dinner, run the vacuum cleaner, getting dressed, drive a car, go to the grocery store, and just getting around in our homes. As we get older the reality of being human is that we all eventually need help with these daily tasks. Whether it is because of physical problems like arthritis or a stroke, or whether it is because of demential or memory loss our ability to perform the daily tasks of living become either impossible or dangerous.
At the point in time when you need help to get through the day, what does one do? Simple Get Help. You get Long Term Care. You may get help through either family members, in home assistance, or move to a assisted living facility, or to a nursing home. Outside of the family member option, most other forms of old age assistance comes at a price tag. A pretty pricey price tag at that.

How Will I Pay For The Long Term Care That I Will Need?

To pay for the assistance you need, you’ll either pay for it completely out of pocket, or some out of your pocket and some with Medicaid and Medicare (See next section), or some out of pocket and some coming from a long term care insurance policy.

Medicare and Medicaid – Do They Cover Long Term Care Expenses?
Bottom line is that Medicare only covers the expense of long term care for a short period of time – like a few months. Once you have collected your Medicate allotment you will have to pay for your long term care needs out of your pocket. At some point, if you are not wealthy, you will probably run out of money. At that point, your long term care expenses can be picked up by Medicaid. However, at this point, Medicaid has its limits as to what it will pay and to whom it will pay it to. Given this, you will most likely be told where you may live.

Paying For Long Term Care With Long Term Care Insurance
Long term care insurance is an insurance policy that you pay into while you are still getting around on your own. You pay into the policy just like any other type of insurance policy. You don’t use the policy until you need it in the future. The more you pay in your monthly premium, the more your insurance covers your long term care expenses in the future.
The sooner you start paying into a long term care policy once you reach around 50 years old the better off you are as you’ll have the coverage when you need it. If you wait too long, you may not be able to get it. If you get to where you need it, but haven’t started the policy, you will have a very difficult time getting the policy.