Long Term Care Insurance – Overview

Paying out of pocket or relying on the government aren’t the only options available when it comes to taking care of what, for many, is the inevitability of needing long-term care. Insurance companies offer a plethora of options to fit everyone’s medical and financial needs.

Buy When You Are Still in Good Health

Your insurance policy must be purchased when you are in excellent health, so be sure not to wait until after you’re already in need. Eligibility is based on current and past health at the time of applying.

If you are already in need of care, chances are you won’t be able to get approved to purchase a policy. Sadly, we see folks every single day who wish to buy LTC coverage, but the insurance carriers decline to offer coverage.

If you’re not sure whether you are eligible, please contact us. The purpose of long-term care insurance is to protect your assets in the case that you fall ill or become disabled later in life. A long-term care policy will pay for nursing home fees, care facility costs, and more.

Conditions Considered Uninsurable by LTC Companies

If you currently have any of the following health issues, then an annuity may be a better option for you, as annuities do not require medical information:

Condition	Condition
Alzheimer’s	Amyotrophic Lateral Sclerosis (ALS)
Cystic Fibrosis	Dementia
Hemophilia	Hepatitis
Kidney Failure	Liver Cirrhosis
Memory Loss	Advanced Multiple Sclerosis
Muscular Dystrophy	Paralysis
Parkinson’s Disease	Post-Polio Syndrome
Schizophrenia	Sickle Cell Anemia
Systemic Lupus Erythematosus

Many of these disabilities prevent people from being covered at any cost, so you will need to apply before any of the conditions above can affect your chances of being approved for a policy.

Best Age to Apply For Coverage

Most informed people suggest that LTC insurance should be purchased in your late 50s to early 60s, but some people can obtain insurance as late as their early 70s if they are in perfect health and don’t mind paying more than those who applied in their 50s and 60s. For people in the 50 to 60 age range, the cost of long-term insurance and benefits can be very affordable.

Cost of Long-Term Care Insurance: What Affects Your Price?

The price you have to pay is called a premium, and the premiums are based on age, health, and the type of plan you are purchasing. Factors like your hobbies and careers can also affect your premium price and ability to get approved.

For instance, a motorcycle rider or someone who smokes cigarettes will have a different premium price than someone who likes to knit and has never smoked before. Riders (additional living benefits added to a policy) can also make your premiums higher as well.

If Possible, Buy Individual Coverage, Not Group Coverage

There are a couple of different ways to buy long-term care insurance: privately or through a group plan that may be offered by your employer or an association. These are all options to look at. AARP is an example of a group insurance company.

Some states also offer State Partnership Programs. If you can, the best option is often a private insurance policy that you can change and alter to fit all of your specific needs.

I hope this article has helped give you an overview of what a long-term insurance policy is and what keeps some people from possible insurability. You can also read more about LTC options and benefit considerations on the other pages of PrepSmart.