Knowing The Difference Of Long Term Care Insurance

It has been said that only 8 percent of Americans have secured long term care insurance for themselves or their loved; that percentage is too small compared to the average life expectancy rate. As life expectancy climbs, more and more people are worrying about their health and unlikely events that might confront them in later years. The need for long term care insurance come into question. Many people are opposed to it because most policies are seriously expensive, and some believe they could finance their own care.

Long term care costs can purge a persons finances and scourge him or her to poverty. A research conducted by the Harvard University on Compensation and Benefits Review claims that more than half or 72% of Americans become impoverished after paying for just a year stay in a nursing home. Not all medical insurance companies offer long term care. Medicare only pays for restrictive institutional care after a three-day hospital stay; the program ignores assistance for daily living such as walking, bathing, and eating. Medicaid somehow covers the bills for nursing home strictly after the person is impoverished.

Statistics says it all. The Genworth Financial Cost of Care Survey revealed how expensive long term care isthe reason why Americans become bereft from their lifetime savings. In 2006 alone, the average national cost of nursing home is $56,717. That cost rises every year to about 5 to 8 percent, this means additional burden to the person needing long term care. Oftentimes, financing long term care from your own resources alone is catastrophic since the costs of care are skyrocketing faster than the inflation rate. However, long term care insurance policy protects the risk of becoming impoverished and other unlikely events that could sweep ones finances, meaning you are free from emotional and financial impact of long term care. Some of the advantages of LTCi are as follows:

-Protect the assets for family and heirs
-Ensures financial independence from family and friend
-Lessens the care-giving responsibilities commonly shouldered by family and friends, thus, reduces the likelihood of paying for professional care
-Allows the insured to choose the setting wherever he or she feels more comfortable: in a nursing home, in an assisted living facility, in the community, or at home. Remember that Medicaid only sends the person to nursing home, but with an LTCi policy the person can freely decide where to receive care.
-The person can design the policy that tailors his or her personal needs. There are wide range of services that can be included in the policy such as daily living activities, home health aides and friendly visitor programs.
However, all those benefits depend on the type of plan you purchase. Theres no one size fits all policy, so youd better evaluate your situation first before taking the risks. The best advice is: know what you want and get what you pay for. Do an extensive research first by comparing policies from insurance companies in your state. Ask help from people with firsthand experience on long term care insurance. It is also recommended to seek financial experts advice so you wont get easily coaxed by fly-by-night companies.