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  • Writer's picturePremier One Financial Company

Long-Term Care Insurance: What It Is and What to Know

Knowing you need help later in life is one thing, but how do you pay for this help? That is where long-term care insurance comes in. In this article, we will explain long-term care insurance, what it is, why you need it and how it works.

What is long-term care insurance?

Long term care insurance is a policy that provides health care for aging people in nursing home care and personal adult care for chronic illnesses, disorders, or medical conditions such as Alzheimer's.

When considering long-term care, it is advisable to start making plans early enough because you won't qualify for the insurance if you already have debilitating health. For context, the policy will not be approved for people over 70 with severe health conditions.

Why buy long-term care insurance?

Regular health insurance can be helpful and comes in very handy when you need it, but they have limitations as regards aging and long-term health needs.

For instance, Medicare will not cover some of the health care needs that may arise, as it generally only covers short-term issues. So if you don’t have insurance to cover all the health care needs, you will have to pay for them yourself and this will take a massive toll on your finances. There are two main reasons people opt for long-term care insurance

  • To protect savings

  • To give you more healthcare choices

How long-term care insurance works

When applying for long-term care insurance, you have to fill out an application form requiring some very vital information.

You'll also have to fill in details regarding your medical records and also be interviewed face to face or by phone. You get to choose the extent of coverage you need. Long-term care policy usually outlines the amount paid per day and lifetime.

What does long-term care insurance cover?

You become eligible to receive long-term care insurance benefits when you can’t do one or two of these day-to-day activities:

  • Eating

  • Bathing

  • Caring for yourself

  • Dressing

  • Using the toilet

  • Getting in and out of a bed or chair unassisted

When you begin receiving benefits, you may not have to continue paying premiums.

Get all the answers you need

When considering long-term care insurance, you need advisors to help answer all your questions and advise you on what financial steps will be in your best interest. You need to consider your age, health, financial condition, financial goals, ways to pay your premium, and other factors to make the right decision, which can be overwhelming to do on your own.

That’s why you want to work with a financial professional like Premier One Financial Company to help you with any questions you might have and guide you in choosing the best policy for your health and budget. We can also help you understand how long-term care can fit into your retirement plan. Contact us to get started.


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