Long term care insurance is a relatively new insurance product, introduced in Canada, the United States and the United Kingdom. It covers the cost of long term care, generally not included in normal health insurance, Medicaid, Medicare or Social Security.
Long term care insurance can be purchased by you as an individual and by purchasing a policy through an insurance company, such as a group plan that provides health insurance for you, your family, and co-workers. It's also sometimes offered by the government, but it's usually very costly. If you buy a policy through an insurance company, you'll find that it comes at a premium and coverage levels similar to Medicare and Medicaid, which are programs offered by the federal government.
The basic benefit of buying a policy through an insurer is that they will pay most of the cost of long term care. However, you must understand that the amount of money paid for long term care insurance isn't guaranteed to cover the full expense. So even though you might receive substantial payments in the form of regular premiums, there's no guarantee that these payments will cover the full expense.
The cost of long term care may vary significantly from state to state. The cost of long term care will also differ from one area to another based on the availability of long term care hospitals, care homes and other facilities. For example, long term care hospital care may cost less in one area than in another.
Many people don't consider long term care until it's too late. They believe that they will have a long life and aren't concerned about paying for it. However, the longer that you wait to purchase an insurance policy for long term care, the more likely it is that you'll miss out on important life improvements. When you become incapacitated, you lose the ability to do most of the things you need to do. You may have difficulty performing basic tasks, leading to lower quality of life and increased stress.
So if you've been thinking about how you'll pay for long term care, be sure you're prepared before you purchase nursing home insurance. If you think you'll be able to manage your finances for several years on your own, you may want to purchase an individual policy. This will allow you to make the monthly premium payments to help pay for routine costs such as rent and utility bills. while insuring that you'll be able to stay in your home without incident for a long time.