You may be in your prime now. You might not be always. This is a fact that no-one can ignore and this is what makes long term care insurance a sensible choice for the individuals. Having a long term care insurance means that you'll be cared for, when you'll be unable to care for yourself.
Why long term care insurance is important?
Long term care insurance is important for every citizen, especially for those who are approaching retirement. Usually those who are above 65 years of age need some form of assistance for their daily activities. Such a form of insurance is not supposed to cover the illness related costs but pays for the assisted living, adult day care, home care and nursing home care costs for those who are unable to perform the daily activities like walking, dressing, bathing, toileting, getting in and out of bed and chairs etc. Individuals with chronic illnesses or with disabilities may need the help of long term care. Long term care can be pretty expensive. This form of insurance makes sure that your personal resources are not entirely used up to provide for your care or that you don't become a burden on your family members.
However, it has been found that relatively few people actually are concerned about their long term care requirements. Only 8 million Americans have such insurance protection, out of more than 313 million US citizens. The reason might be contributed to the lack of awareness amongst the citizens or the misconceptions that has resulted out of limited knowledge. Read along to know the facts about long term care insurance, so that the reigning myths can't fool you anymore.
Facts behind the deluding long term care insurance myths
To know how significant long term care insurance is, you must get rid of any misconceptions that you may have about it.Myth 1 - Long term care insurance is just another form of health insurance.
Fact - What? Who told you so? It's one of the major misconceptions that roam around in the market. Often individuals think that they don't need long term care protection if they have ample health coverage. Health insurance doesn't pay the expenses of the assisted care for daily activities like bathing, dressing etc. for which you need LTC insurance.Myth 2 - Medicare and Medicaid pays for the long term care needs.
Fact - Medicare limits its coverage for hospital and doctor bills. It only provides for short term nursing home care and usually doesn't pay for home care and custodial care during long-term disabilities. On the other hand, Medicaid only lends financial help for individuals with low income and limited assets. To receive the federal or state grants, individuals have to fulfill stringent criteria, and thus Medicaid program doesn't serve the purpose for the middle-income families.Myth 3 - One can depend on personal savings and family members for the required long term care.
Fact - Yes, this completely depends on personal choice. But does it make sense to deplete all of your savings for nursing home care or assisted living care? What if your retirement savings fall short? You'll have to sell off your assets to provide for the expenses. The same situation may arise if you're depending on your spouse or children. What if you outlive the one you're dependent upon?Myth 4 - Only senior citizens need to worry about long term care insurance.
Fact - This is another one of the major misconceptions. Disability or chronic diseases is not biased towards the senior citizens only. Any individual from any age group and from any financial background may need long term care. It's sensible to buy long term care insurance as early as possible, and not to wait for the retirement age. The younger you buy, the more you'll be able to save for long term care. Besides, old age is usually accompanied with health complications, and the premium costs are going to increase if LTC insurance is bought at a matured age.
Individuals from high-income groups may prefer to pay for their long term care needs out of their own financial resources. Long term care insurance is expensive as well, and takes inflation into account. However, the insurers modify the coverage limits and offer personalized LTC coverage for the individuals to make it more affordable.