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Know the 7 Key Parameters of Long Term Care Insurance

Our chance for needing long term care (LTC) increases the longer we live. Directly paying for LTC can easily deplete an average person’s estate leaving a beneficiary with no legacy. You can purchase LTC insurance to protect your legacy. But you must understand if the 7 key parameters of your policy will do the trick for you. These are explained below.

Long term care consists of helping a person with performing his daily activities (eating, bathing, toiletry, etc…) when he no longer can do them alone. Helping an elderly to doing these can occur at home, at a day center or at a nursing home at approximate yearly cost of $15,000, $30,000, and $80,000 respectively.

Without sufficient income and an estate of a few hundred thousand, such costs – especially at a nursing home – can wipe you out in a few years. You can use long term care (LTC) insurance to help preserve your estate as a legacy. But you better know what parameters determine how effective that insurance will be in your situation.

The seven parameters that characterize most LTC insurance policies are:
1. Services are covered
2. Excluded coverage
3. Triggering event for coverage
4. Elimination period
5. Maximum daily benefit
6. Length of coverage of benefits
7. Cost of premiums

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