Long Term Care Insurance Choices in Coverage

Long term care insurance is an insurance policy that aids the policy holder financially when he or she is in need of care during a prolonged time period beyond a pre-determined period. This type of insurance is commonly referred to as LTC insurance. Even healthy people can benefit from a LTC insurance since they might require long-term care when they become older and unable to perform basic things such as taking a shower, cooking, getting out of bed etcetera. In the United States, Medicare does not pay for long-time care and it is therefore important to purchase your own insurance to cover this need. Medicaid can however pay for long-term care for impoverished people that are unable to pay for themselves.

When you obtain long term care insurance quotes it is important that you go through the fine prints of the long term care insurance policies. Many LTC insurance policies will have deductible days or elimination periods that can be up to 90 days, or even longer in some cases. A higher long term care insurance quote can therefore turn out to be more economical in the long run than a lower long term care insurance quote. An LTC insurance policy can also require proof of a certain amount of days that care has already been paid for before they pay out any money. If you simply choose the lowest long term care insurance quote without reading through the different regulations, you might find out much later that you are required to pay for more than 12 months of care before you are eligible for financial aid from your LTC insurance in accordance with the policy of that particular long term care insurance quote.

There are two types of LTC insurance policies: Tax Qualified LTC insurance and Non-Tax Qualified LTC insurance. When you compare different long term care insurance quotes it is therefore important that you take into account if they are for Tax Qualified LTC insurance or for Non-Tax Qualified LTC insurance, since this will affect not only the long term care insurance quotes but also the LTC insurance policy. A Tax Qualified LTC is often better and can therefore justify a higher long term care insurance quote.

The Non-Tax Qualified LTC insurance is sometimes also referred to as Traditional Long Term Care insurance. In the United States, this type of LTC insurance has been available for more than three decades. With this old form of long term care insurance, a “Medical Necessity”-trigger is usually needed to “trigger” the LTC insurance policy before any money is paid out from the LTC insurance. The LTC insurance will be triggered when a doctor – the patient’s ordinary doctor or a doctor from the insurance company – formally states that the policy holder needs care during a prolonged period of time due to a medical reason.

Tax Qualified LTC insurance policies do not have a “Medical Necessity”-trigger. Instead, your must be expected to need care for 90 days or more before you can collect any money from your long term care insurance. It is important to keep this dissimilarity in mind when your compare Non-Tax Qualified long term care insurance quotes with Tax Qualified long term care insurance quotes. With Tax Qualified LTC insurance, you must also require assistance to perform two normal activities of daily living, such as taking a shower and dress to be eligible for any money from your long term care insurance. The impairment that causes the need of assistance do not have to be physical for your Tax Qualified LTC insurance to be triggered, it can also be a cognitive impairment. A third requirement for the Tax Qualified LTC insurance policy is that a doctor sets up a Plan of Care. Without a Plan of Care, you will not receive any money from your Tax Qualified LTC insurance.

Today, Tax Qualified LTC insurance policies are much more common than Non-Tax Qualified Long term care insurance policies it is however still important to check if your long term care insurance quote is for the type of insurance you want. Most consumers prefer a LTC policy that comes with substantial tax benefits, since they do not want to pay income tax for the money that are set aside to pay for the LTC insurance. You should however always look at all the factors before you decide if you should choose a Tax Qualified long term care insurance quote or a Non-Tax Qualified long term care insurance quote. In some situations, the benefit trigger on Non-Tax Qualified LTC insurance can make it a better choice than Tax Qualified Long term care insurance. A Non-Tax Qualified long term care insurance quote can sometimes be more economical than a Tax Qualified long term care insurance quote in the long run, even if the Tax Qualified long term care insurance quote is lower and comes with tax benefits. This means that you always have to research to se if a Tax Qualified long term care insurance quote or a Non-Tax Qualified long term care insurance quote is the best most economical choice for you.

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