Long-Term Care Insurance and You

Here’s a startling figure: $74,806.

That’s the average annual cost of nursing home care according to Genworth Financial’s 2007 Cost of Care Survey. This pays for any assistance needed with the basic activities of daily living, such as bathing, dressing and eating. If you become severely ill, disabled, or mentally impaired so that you can’t take care of yourself, you’ll need some help. And many people need help paying for the high costs of such assistance. Because standard health insurance policies don’t cover these costs, long-term care insurance is available.

Long-term care insurance provides ongoing income to cover the costs of living assistance. It's generally available through groups and to individuals. Group plans are usually through employers, and they are becoming a more common benefit. Those who are unemployed, self-employed or work for a small company that doesn't provide this type of insurance are a good fit with an individual coverage.

If you are reasonably healthy and between the ages of 18 and 84, chances are good you can purchase long-term care insurance.  Policies usually limit benefits to a maximum dollar amount or maximum amount of days.

What should you look for in a policy? The National Association of Insurance Commissioners suggests you look for a policy that includes:

• At least one year of nursing home/home health care coverage
   
• Alzheimer’s disease coverage
   
• Inflation protection
   
• An outline of coverage that describes the policy’s benefits, limitations, and exclusions
   
• A guarantee against cancellation, nonrenewal or other termination based on age or deterioration of physical/mental health
   
• The right to return the policy for a premium refund within 30 days of purchase

If you want to know more about long-term care insurance and which options are right for you, give our Vantage Investment Services Group professionals a call today.