Long Term Care Insurance Central - Frequently Asked Questions



		Frequently Asked Questions & Some Important Points Why Choose Long Term Care Insurance? Long Term Care Insurance is an insurance product that has been brought about by recent advances in medicine which enable people to live much longer lives. With today's longer lifespans, the question of extended care and how it will be paid for is an extremely serious issue for many families. Typical reasons for extended care include afflictions such as Alzheimer's Disease, senile dementia, Parkinson's Disease, arthritis, cancer, heart disease, emphysema, strokes, diabetes, and depression. Keep in mind that these are only some of the causes which necessitate extended care - in fact, accidents at home count for than 30% of unplanned extended care needs. Considering Long Term Care Insurance? Long Term Care Insurance has become a necessary expense in the 21st Century. A few of the reasons for this include: High Risk Of Extended Care - An estimated 40% of all elderly persons will require home health care or spend some time in a nursing home or assisted living facility. High Cost Of Care: Health care costs are high and continue to grow annually. According to recent industry studies, 10 years from now, costs could well double from current rates of $40-80 thousand per year. Wealth Protection: More than half of those who require long term care will pay out their life savings within one year. Why Is Long Term Care Insurance Necessary? Long Term Care Insurance is necessary because few people qualify for long term help from Medicare. In fact, of the $60 billion Medicare spends annually, less than 2% of that is spent on nursing home costs and a limited amount of skilled nursing care in a home care situation. As well, Medicare and Medicare Supplemental Insurance is not meant to protect people from spending their life savings on long term care expenses. Instead, Medicare Supplement Insurance only pays for Medicare deductibles and co-payments. What Does Medicare actually cover? Medicare does not pay long term care expenses, but will cover some forms of limited convalescent skilled nursing care and some forms of limited home health care under restrictive, short-term conditions. Short-term care is typically defined as no more than 100 days. This coverage, however, comes with some implicit conditions: The patient must have been in hospital for at least three days immediately prior to entering a nursing facility. (This condition effectively eliminates most Alzheimer's and Parkinson's cases.) The patient must enter a facility for the same condition for which he/she was previously hospitalized within thirty days of discharge The patient must be showing reasonable progress. Once provided care does not show additional progress, Medicare will cease additional payments. Medicare covers only skilled nursing care. Intermediate or custodial care are not eligible. Medicare will only pay for hospice care if you are terminally ill and have a life expectancy of six months or less and choose to receive hospice care rather than regular Medicare benefits for management of your illness either in your home or in a Medicare-approved hospice. Of course, these are but a few of Medicare and Medicare Supplement Insurance limitations. We always refer our clients to the "Guide to Health Insurance for People with Medicare," which is provided by the National Association of Insurance Commissioners. This guide explains the limitations of Medicare in much greater detail. Will Medicaid Help Me? Medicaid is a form of welfare intended only for those with extremely low incomes. In order to receive Medicaid assistance, income and assets must be either non-existent, or extremely low. Additionally, when Medicaid is applied for, you should know that your assets are not protected. The Insurance Portability and Accountability Act of 1996 makes it a federal crime to "knowingly and willfully" transfer financial assets in order to qualify for Medicaid coverage of nursing home and other long-term care services. Important Statistics In a recent survey by the American Health Care Association, 76% of those surveyed said they do not expect to need long term care in the future. Unfortunately, most people do not plan for the possibility of long term care. What results is a tendency for families to crisis manage when a family member needs constant care. Most people's savings plans cannot withstand 1 to 2 years of long-term care costs. 70% of seniors have nursing home fees paid for by Medicaid Once on Medicaid, choices for care are limited to facilities that have chosen to participate in the program. In a recent survey, seniors who had purchased long term care insurance made one or more of the following statements: They did not want to be a burden on their family They wanted quality care They wanted to preserve their wealth so it could be passed on to their family Long Term Care Insurance - Your Best Solution Long Term Care Insurance protects not only your assets, but the most important people in your life: your spouse and family. Recent statistics show that two out of five seniors require some form of long term care, and that the number increases every year. A recent survey of seniors who purchased long term care insurance indicated five main reasons why they bought long-term insurance. 1. Peace Of Mind - The peace of mind offered by quality long-term care insurance is immeasurable. Long Term Care Insurance offers truly affordable protection and alleviates a large degree of worry for many seniors. 2. Asset Protection - Life savings are easily wiped out by rising nursing home costs. Most people would rather their home, life savings, and other assets go to their family or charity, instead of going to a nursing home. 3. Burden - Most Americans don't want to be a burden on their spouse or relatives. And because the burden is frequently both financial and emotional, it is incredible harmful. 4. Quality Care Access - The quality of care under welfare or Medicaid plans is often far substandard to private facilities. As well, high quality nursing homes tend to favor private pay patients for admissions. Private pay coverage can give a family freedom of choice. 5. Independent Choice - Americans are used to making choices for themselves. With Medicaid, that freedom of choice is lost along with personal assets. Some Final Words… Long Term Care Insurance is truly affordable. Purchasing it does not deplete your life savings, nor affect your lifestyle - unlike the alternative. Rates depend on age, health, and the amount of insurance you wish to purchase, and are often tax deductible. In America, we rarely hesitate to purchase insurance that covers our home, automobile, or general medical expenses. Yet only now are seniors beginning to see the importance of Long Term Care Insurance. We at Long Term Care Insurance Central hope this information has been helpful. It has been our goal to educate clients about our products since we established in 1988. Yet, we have long known that many of our clients are served best with a direct consultation. Please take advantage of this by contacting us here. HomeIndividual Coverage Business Coverage LTC FAQ Glossary Of Terms LTC Companies Free Quote Contact Us Partners Other Web Resources Please forward all comments and concerns regarding the content and design of this site to our Webmaster.