Long-term Care Insurance is Different from Traditional Health Insurance

Many believe that the government will pay for their long-term healthcare needs when they’re older. Unfortunately, several misconceptions circulate the web regarding health insurance for seniors, and these days many rely on social media posts for their daily news. Though, some media posts may be unreliable and it’s important for your health and wellness to keep up-to-date with reliable information from a verifiable source.

Common Misconceptions Regarding Health Insurance Coverage  

One common misconception: “my health insurance will cover the costs of my long-care needs.” Only under certain circumstances and up to a maximum of 100 days will Medicare cover your long-term care needs. Typically, most health insurances plans don’t even cover the costs of basic care needs associated with chronic illnesses or traumatic injuries. As a result, many seniors are seeking long-term care insurance plans to help them pay for these additional costs.

Long-term Care Insurance is Different from Traditional Health Insurance

Traditional health insurance is not the same as long-term care insurance (LTCI). Simply put, LTCI covers your long-term care needs when the effects of aging impact your daily life. It includes support and services, such as custodial and personal care, in your own home or a nursing facility. Like any insurance policy, the various benefits and care options depend on the preferred insurance company you choose. This will determine how much funds you can spend to pay for the services and personnel you need to help you with activities, like eating and dressing.

How Do Insurance Companies Calculate Your Premiums?
Insurance companies calculate your premiums on the following factors:
  • Age ~ Specifically, the age you were when you purchased the policy. The older you are, the more likely they are to decline you. Some insurance companies deny seniors over the age of eighty-years. The younger you are when you purchase LTCI the better because you have more time to build up your assets for the future.
  • Gender ~ Women live longer than men and insurance companies feel it is only fair that women pay up. Ladies expect your premiums to me much higher than your male counterparts.
  • Health ~ This one is a no brainer. If you are currently receiving treatment for a chronic illness, it’s likely you will have higher premiums or possibly be denied coverage.

There are other variables insurance companies consider, like inflation and the benefit period, but ultimately your age and health play a pivotal role in your premiums. What’s important is to do your research and compare insurance prices before choosing one. There are varying price ranges, but an average LTCI for a couple in their late fifties or early sixties typically ranges from $2,000 to $4,000 per year.

Long-term Care Insurance is Different in Each State
Long-term care insurance is state regulated and each state has different companies and policies available. The best time for you to buy LTCI is when you are in your mid-fifties. If you are looking for a place to begin, talk with your provider or try searching here. Start planning today to enjoy a healthier tomorrow!