Since the federal government imposed state Medicaid funding cutback, individuals who have been receiving care in nursing homes via Medicaid have been moved back to their homes or to community-based long term care (LTC) facilities in order to preserve whatever is left in the Medicaid coffers.
So, if Medicaid is in your list of long term care plans you’ll be doing yourself a big favor if you would cross it out. What’s the point in settling for free LTC coverage if it doesn’t meet your exact health care requirements?
If you’re in your 40s or 50s, it’s worth looking at long term care insurance for you can definitely clinch a policy with excellent coverage and low annual premium. If you wait till you’re over 65 before buying, your health might be in the state of deterioration by the time and you won’t get any insurance company’s approval anymore.
Your age and health will determine the price of your policy that is why LTCI specialists keep reminding everybody to secure an LTCI policy while he is young and healthy.
Do you prefer to pay $3,500 annually or $680 annually? If you want the latter, straighten out your long term care plans early.
In the second quarter of this year, the American Association for Long-Term Care Insurance reported that there has been a huge increase in the number of insured residents in smaller states. Honestly, this came to me as a big surprise because a few months earlier people were still undecided about their long term care plans.
Many Americans acknowledge the fact that a long term care insurance (LTCI) policy can absolutely alleviate the cost of care. Despite this acknowledgment, many of them remain uninsured as they fear the thought of wiping out their resources to the cost of annual premium.
This fear spurred many of them to look at other options, and to somehow consider these, even though they signal mediocre services.
Medicaid, for instance, is the main target of many hopeless uninsured residents who are thinking that the quality of care they will receive via this federal health insurance program is similar to what insured individuals will be getting.
Absolutely not true.
First of all, individuals with comprehensive LTCI policies have the freedom to choose where they want to receive care while Medicaid dependents do not.
Secondly, the benefits of an insured individual can increase over time according to his policy’s amount of inflation protection.
Now if you’re on Medicaid, you have to make do with whatever this program is capable of providing you; there is absolutely no way that you can make requests because only two-thirds of Medicaid’s total budget is allotted for long term care.
Long term care insurance – what is it? What does it pay for? This video finds out what people know about this type of insurance. As expected, most of them don’t have any idea what it entails. Watch it!
Description: Due to old age, mental or physical illness, or injury, some people find themselves in need of help with the basics actions of everyday life. Long-term care insurance covers you for this and helps lift the burden of care from yourself and your loved ones.
Every long term care insurance company has an underwriter whose job is to assess the health condition of an LTCI buyer and the findings of his work will determine the buyer’s annual premium and amount of coverage.
So, it is advisable to seek assistance from a licensed LTCI agent who can help you lobby for a policy which will meet your health care requirements and budget.
Now if you’re below 50 years old and you boast excellent health, you probably won’t encounter any issues with an insurance firm. In fact, young policyholders of long term care plans are currently enjoying low annual premiums as they’ve managed to avail of the good health discount which ranges from 10% to 15%. Even if their health changes in the future, they won’t lose this privilege.
Apart from your health condition you also have to consider your assets before buying a policy. Although I mentioned earlier that insurance companies are more concerned about a person’s health than his money, I didn’t say they don’t require it.
Even though owning a long term care insurance policy is necessary these days, it is unfortunately not designed for everyone. Those with an annual income of $75,000 or more will definitely be able to afford it, but if you’re earning less than this you have to think 10 times before putting your money on this product.
Better yet, consult a trusted LTCI representative as he can provide you with helpful options.
Are you planning to purchase a long term care insurance (LTCI) policy? If you answered yes then you should probably be talking to a licensed LTCI agent already, or perhaps checking the cost of care in your area by requesting long term care quotes before you start manifesting health problems.
I used to think that all it takes to be able to clinch a comprehensive LTCI policy is a chunk of cash but I was wrong. Insurance companies are more concerned about a person’s health than his bank account. So even if you currently have a nest egg of $500,000 if the state of your health fails to impress them, your application for an LTCI policy is bound to be rejected.
Pre-existing conditions are a no-no to insurance firms marketing LTCI policies, so if you have any of the following your chances of qualifying for a policy are very slim:
• Alzheimer’s Disease
• Liver Cirrhosis
• Parkinson’s Disease
• Muscular Dystrophy
• Multiple Sclerosis
Some companies would also refuse coverage to individuals with functional limitations in the activities of daily living (ADL) namely eating, bathing, dressing, toileting, continence, and transferring. However, there’s a few that would provide long term care coverage in exchange for a higher premium.