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Who Needs Long Term Care Insurance?

By Compuquotes Team on July 8th, 2009

Long Term Care

Long-term care insurance is an insurance policy that helps individuals to make available resources to be used for costs of long-term care beyond a determined period. The coverage of this insurance are those that aren't generally covered by health insurance. Individuals who need this type of insurance are those who are unable to execute the basic daily living activities such as eating, bathing, dressing, walking, standing, and others. This long-term care insurance, however, doesn't necessarily mean it is purchased for a long period. Some individuals who purchase this need only a few months to fully recover from illness or surgery.

The aging of an individual increases his risk of requiring long-term care. The expenses of long-term care are usually not covered by the Medicare of the United States, but can be covered by Medicaid provided that an individual is willing and able to pay. Nevertheless, age is not a factor needed to determine one's need for long-term care insurance. People who are receiving this coverage are normally aged between 18 and 64.

People who require long-term care typically prefer care in their homes or in private rooms of living facilities. This insurance can pay for caregivers, housekeepers, therapists, and private nurses if home care coverage is purchased in the insurance policy. If assisted living is purchased, the insurance can pay adult daycare, palliative care and relief care. This insurance can also pay for the costs of taking care of an individual suffering from Alzheimer's disease, Parkinson's disease or other forms of dementia.

Older persons who are uncomfortable with the continual reliance on their children or other family members for support may find this insurance helpful to let them cover expenses for themselves. The lack of long-term care insurance may hasten the depletion of savings of the family. People also purchase this insurance because the premiums being paid in this coverage are viable to get included in tax deductions that are based on the age of the insured person. This enables individuals to save money from tax deductions.

The costs of coverage for this insurance may be expensive, especially if insurance buyers wait for their retirement before getting a long-term care coverage. Two types of coverage for this insurance exist: Non-tax qualified and tax qualified. The non-tax qualified type is a traditional long-term care insurance in which a doctor, or any qualified personality states the patient's needs care and then the policy will pay. Individuals who are covered by this insurance may face a larger tax bill for these benefits. Tax qualified policies require the insured person to need care for at least 90 days and should be unable to execute at least two basic daily living activities without assistance. The patient's need for substantial care and assistance may be due to a cognitive impairment. The benefits of this insurance coverage type are non-taxable.

Once insurance is purchased by a policy holder, the language of the contract cannot be revised by the insurance company and the policy in it is renewable for the person's lifetime. Health reasons are not a ground for the cancellation of long term care insurance, but non-payment is a ground for canceling such.

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