The reason people buy Long Term Care Insurance is so that they have the resources to pay for home health care, assisted living care, nursing home care, or some other types of care that are needed if they are unable to take care of themselves independently.
Some people with large estates get Long Term Care insurance because they do not want all their hard earned money or property go to paying a nursing home. Rates of $100,000 per year are not uncommon for skilled nursing care. In order to qualify for Medicaid to pay these expenses, resources must be spent down to almost nothing (if a spouse is at home, the spouse does get to keep half of the couple's resources). So having Long Term Care insurance to pay for these costs both helps preserve the estate and assists the spouse left at home, if applicable.
One aspect of Long Term Care insurance that is not always considered is the freedom of choice that is offered to persons who carry insurance to cover chronic care expenses. If they have the right type of coverage, they can pay a relative to come live with them or choose home health care, if that works. If they must go to a nursing home, they have more choice in the facility they want to live in, versus having to go with the room arrangements or facilities that only Medicaid will cover.
This is not to say that Long Term Care Insurance is for everyone. If you have very few resources and are already on Medicaid, or anticipate getting Medicaid benefits in the future, there is no need to purchase Long Term Care Insurance. And if you need to dip into grocery money, forego medical care, or lead a poor quality of life to pay for LTC insurance, that is not worth it.
Consulting with agencies that can shop for these policies to get you the best rate, and also guide you through the decision whether and what to buy LTC insurance, is a great place to start.
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Some people with large estates get Long Term Care insurance because they do not want all their hard earned money or property go to paying a nursing home. Rates of $100,000 per year are not uncommon for skilled nursing care. In order to qualify for Medicaid to pay these expenses, resources must be spent down to almost nothing (if a spouse is at home, the spouse does get to keep half of the couple's resources). So having Long Term Care insurance to pay for these costs both helps preserve the estate and assists the spouse left at home, if applicable.
One aspect of Long Term Care insurance that is not always considered is the freedom of choice that is offered to persons who carry insurance to cover chronic care expenses. If they have the right type of coverage, they can pay a relative to come live with them or choose home health care, if that works. If they must go to a nursing home, they have more choice in the facility they want to live in, versus having to go with the room arrangements or facilities that only Medicaid will cover.
This is not to say that Long Term Care Insurance is for everyone. If you have very few resources and are already on Medicaid, or anticipate getting Medicaid benefits in the future, there is no need to purchase Long Term Care Insurance. And if you need to dip into grocery money, forego medical care, or lead a poor quality of life to pay for LTC insurance, that is not worth it.
Consulting with agencies that can shop for these policies to get you the best rate, and also guide you through the decision whether and what to buy LTC insurance, is a great place to start.