Long-term-care insurance is one of the most misunderstood insurances. Long-term care insurance helps you maintain control of your assets and helps family members with care solutions.
Long-term care is what a person would require if they become unable to perform several of the activities of daily living, such as getting out of bed or getting around, bathing, toileting, dressing or eating. People may also require some form of care if they have a cognitive impairment such as Alzheimer's disease or senile dementia. Long-term care is not covered by your standard health or medical insurance plan. The cost of long-term care falls to the person needing care and, often, their extended family.
What happens when someone needs help with the activities of daily living? Often a spouse and/or other family members will step in to care for their loved one. Some people hire caregivers to visit or stay with them at home to provide care and do household chores. Care can also be provided in an Assisted Living residence or nursing home. How much can this care cost?
According to a study completed in October of 2007 by MetLife, in Vermont the average nursing home cost is $224 per day for a semi-private room. Home care costs have more of a range depending upon the type of care provided. A reasonable rate is $25 per hour. If family members are involved in the care, the costs to them can be emotional and, if they need to amend their work schedule, financial.
How can you assuage the financial costs of long-term care? You can purchase a long-term care insurance contract. All of the better long-term care insurance policies will cover the different types of care available today. The cost of this insurance is based upon the daily dollar benefit amount chosen, duration of benefits payments, inflation protection, and options such as Return of Premium option and Survivor Benefits options.
Long-term care insurance qualifies for some tax benefits, too. If premiums are paid for by an employer, the premium amount is a business deduction. For individuals, a portion of the premium amount is tax deductible along with your other medical deductions. Benefits are tax free.
Long-term care insurance is medically underwritten. This means that one has to be in overall good health and not currently in a position of needing care when they apply. Long-term-care insurance does not pay for doctors, medicine or hospital care.