Transfer risk with private insurance

Not everyone has the resources to pay for all their long-term care expenses by themselves. To protect against these costs, you can purchase insurance to limit the financial risk you will face should you need help due to a chronic condition or illness. Over the past 15 years, LTC insurance has matured into a well developed product with many different features. This section will give you the basics. If you want more information, click on LTC Resources. You will need to work with your local LTC insurance specialist to select the policy features than meet your individual needs.

HOW LTC INSURANCE WORKS
Private insurance is designed to cover catastrophic long-term care expenses. These policies pay when you are severely impaired and need help with 2-3 ADLs or supervision due to a cognitive impairment.

• LTC insurance is offered to individuals or may be available through your employer. The Federal government and many states offer this insurance to government workers and retirees.
• Most policyholders pay monthly premiums. Some companies will allow you to pay-off your insurance in 10 payments or as a single lump-sum premium.
• Comprehensive policies cover help at home, in an assisted living, or in a nursing home. You can also select a policy that pays only for nursing home care or homecare. Some policies may pay a family member to provide care.
• Most policies reimburse the cost of care. Some pay cash when you qualify for benefits.

BENEFITS OF LTC INSURANCE

• Peace of mind knowing the money is there.
• Care advisory services to help in crisis and to monitor quality of care.
• Permission to get help.

WAYS TO MAKE LTC COVERAGE MORE AFFORDABLE
There are several options that can make the cost of your premiums more affordable. Talk to your LTC insurance specialist about it.

• Discounts: Many insurance companies offer substantial discounts for couples who buy their policies together. People who are in excellent health may also qualify for a superior rate.
• Buy it at work: Employers can negotiate with insurance companies to offer their current and retired employees LTC insurance through the workplace.
• Federal and state tax incentives for LTC insurance are available to individuals and businesses.

OTHER INSURANCE OPTIONS
Life insurance may cover long-term care services directly or by paying out a portion of the death benefit in advance (accelerated death benefits). These products are useful for people who are not eligible for LTC insurance due to a pre-existing health condition. However, it is important to ensure that the remaining death benefit will cover the needs of the survivors.

Working-age people may consider buying disability insurance that converts to long-term care coverage after age 65.

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