Long Term Care Insurance Quotes

The Need for Long Term Care Insurance

Long term care insurance helps pay for the cost of assistance, required by people who are chronically ill or disabled, for an extended period of time. Generally, the need for long term care is associated with the aging population. However, according to the U.S. Government Accountability Office, 40 percent of the 13 million people receiving long term care, are between the ages of 18 and 64. According to the American Association for long term insurance, only 8.2 million Americans currently have long term care insurance. A person who has long term care insurance can be looked after in a nursing home, at an assisted living facility or in the comfort of their home. Most people prefer staying at home even if they are not in a position to perform daily chores without the necessary assistance. The monthly cost of assisted living is around $3030 while the monthly cost of being taken care of at home can work out to $3050. Nursing homes, of course. are exorbitantly expensive. Hence, when people require assistance for basic chores like eating, bathing, dressing and moving around the house, long term insurance is indispensable. It has been estimated that nearly 70 percent of people aged 65 and over would require long term care at some point of time in future. Although Federal programs like Medicare and Medicaid exist, they are not suitable, for covering the cost of long term care, due to the following reasons. For people over the age of 65, the federal program Medicare may pay certain medical expenses. However, Medicare covers a small percentage of the nursing home cost in the event of a person getting hospitalized. The cost of home care is covered only for a short period of time. Medicaid, which covers the cost of health care for people who cannot afford health care, covers only half of all the nursing home costs. Hence, long term care insurance is a must for most people, since their assets may not be sufficient to pay for the cost of long term care.

Shopping for the Best Long Term Care Insurance Quotes

Federal Long Term Care Insurance Program (FLTCIP): Facilities Only Plan and Comprehensive Plan, are a part of FLTCIP, that provides long term care insurance to the federal employees, annuitants and qualified relatives. The Comprehensive Plan, as the name suggests, includes benefits not provided by the Facilities Only Plan. The former covers up to 75 percent of the cost of adult day care and home care. Both plans cover 100 percent of the cost of hospice care, both at home and in a facility, the cost of the nursing home, assisted living care and respite care at a facility. The age of the employee is used to determine the amount of premium. The premium once determined, does not change with age or on account of a person developing health problems. Hence, FLTCIP is a wonderful option for people who qualify. For others, private insurance is the way to go.

Private Long Term Care Insurance

Group Long Term Care Insurance: Employer based long term care insurance is a good option for people who are employed, since collective bargaining power results in a lower per head premium. Moreover, people unable to qualify for long term care insurance may be covered by group long term care insurance plans. In case most of the group participants are below the age of 55, the per head premium is much lower as compared to individually purchased long term care insurance. According to the American Association for Long Term Care Insurance, in the year 2008, 24 percent of buyers of long term care insurance were between the ages of 34 and 44, 36 percent were between the ages of 45 and 54, while 23 percent were between the ages of 55 and 64. The average premium for people, between the ages of 45 and 55, was around $690, while younger people could expect a premium as low as $300. This is because older people are charged a higher premium. The coverage can be extended to include the employee's spouse, parents and parents-in-law.

Individual Long Term Care Insurance: Although individual long term care insurance quotes are much higher than group long term care insurance quotes, there are instances when a person may be better off opting for an individual policy. For example, a younger person in a group of significantly older people may have to pay a higher premium for a group policy as compared to an individual policy. In this situation, it would behoove the individual to opt for a separate policy.

The long term care insurance policy should hedge against inflation since the cost of health care is expected to increase by 5 percent on a yearly basis. The insurance company should be financially sound so that it can provide long term coverage for a period of 10 to 20 years after the policy is issued. The coverage should be comprehensive and the company's claims policy should be well understood. Since private insurance companies have a 6 month pre-existing condition exclusion period and can increase the premiums on account of advancing age and health conditions, a person should ensure that he has the necessary finances to pay for health care, in case the need arises.