Coverage of long-term care insurance

Insurance in general protects one against potential risks, against accidents and catastrophes or other financial losses. For example, health care insurance compensates a patient for the money he/she spent in settling hospital bills and doctor charges. But what insurance covers can one look upon to if it is a case of long term care?? The long-term care insurance is exclusively designed to tackle such a situation, to cover a patient’s long term care service expenses irrespective of it being in a clinic or his/her home.

That is, technically, long term care insurance helps one to,

  • Shield one’s family from the larger costs of long term care.
  • Remain in total control of his/her assets.
  • Maintain one’s dignity and independence.

In short, subscribing for long term care insurance prevents the need to sell off all assets owned by the patient’s family in the attempt to pay off the bills.

Long term care extends much beyond the normal nursing and medical care to encompass all the assistance one may need if affected with some chronic illness or any sort of disability rendering the policy holder unable to take care of himself for a long period of time. Generally it is the old age people who may find themselves in such helpless situations. Also, young or middle aged persons, who have been handicapped by an accident or a debilitating disease, may need long term insurance care on a safer side.

As opposed to other insurance types, from an insurance company point of view, the chances for one requiring or claiming his/her long term insurance policy is as high as fifty percent. As it is business for them, the only way in which they could make profits is through an increased premium. That is, the premium of long term insurance policies increases as the customer gets older. This is one important factor a customer should verify before buying a policy – how the premium increases with age?

When the premium increases to such levels, straining an average customer’s fixed budget, he/she will be no longer able to pay it and subsequently will be forced to cancel the policy, thereby losing a substantial sum in terms of paid premium. Exactly this is the business technique insurance companies rely on for making huge profits. At the time of canceling the customer fail to see that he/she was indeed very near to the period of actually claiming the policy.

Also, for the customers, it is very important for them to read and understand the rules and terms of the insurance policies. Mind you, many claims are rejected on the basis of incompliance with any of the rules specified in the contract. The terms and conditions associated with a long term care insurance policy or any other insurance coverage are written by trained lawyers – who are experts in the trade – on behalf of the insurance company and they lay down the conditions in such a way as to take advantage of the existing laws governing the insurance policies. There is a high probability that a common man, without thinking about the intricacies of the rules, might easily fall prey to the insurer.

Understanding policy rules means comparing various long term insurance policies and getting used to the insurance jargon and familiarizing oneself with the way terms of art have been shaped and how courts interpret those. One can seek professional help in this regard if found moving forward tough. Or an established and trusted brokerage firm can offer valuable advice regarding the advantages and disadvantages of insurance policies.

To conclude, long term insurance policies can be a boon in old age. But the customer should take care to see that the policy he has selected is indeed a decent one. It is all about being judicious and prudent in zeroing in on the right policy!