Guide To Health Insurance.org

Long term health insurance, also referred to as long term care insurance, is a relatively new type of health insurance. Its purpose is to cover the costs of long term care that is provided in places such as nursing homes or assisted living residencies. This insurance is typically purchased by those approaching senior citizenship, and who are looking ahead to possible future medical needs.

Reasons to Purchase Long Term Health Insurance

It is estimated that over 50 percent of U.S. citizens will, at some point, need long term care in a facility outside of their homes. With life expectancy continuing to rise, this percentage is not likely to diminish. Long term care in a facility is very expensive -- the average nursing home charges around $40,000 a year.

Medicare typically pays for only 100 days in a nursing facility. It often does not pay at all for assisted living facilities. Without long term care insurance, the savings for which a person or a couple has worked a lifetime can be wiped out very quickly.

There are laws that protect people who have run out of money from being uncared for. However, the fact of the matter is that having the money to pay for long term care gives the person who needs care and his family more options. Choices can be made as to the best facility, not simply the one available. Having long term care insurance can bring peace of mind to family members who are unable to give personal care, but still wish to have their loved ones cared for in the best possible facility.

Often, when a person goes into long term care, he or she has a spouse who does not require this type of care. If there is not long term health insurance, that spouse could be left with no savings and forced to live at lower standard of living than planned.

Choosing Long Term Health Insurance

The best time to choose long term health insurance is when you are relatively young - long before you may need it, and before you are ill. Also, the younger you are when you purchase it, the lower the premiums will be. Some people are starting to purchase long term health insurance by age 45, particularly if it is offered through an employee policy. Others wait until around age 60 to begin purchasing the insurance.

If you choose to purchase long term health insurance, compare several policies before buying. Contacting the state insurance department can tell you which companies sell long term health insurance in your state.

It is best to find a policy that you can afford with the following features:

• Broad coverage - The policy should cover nursing facilities, assisted living facilities, and custodial care in either. Custodial care includes help with eating, dressing, bathing, and other tasks that are not specifically medical. Some facilities charge separately for custodial care, while some policies do not cover it at all.
  
  
• Limited restrictions - Look for a policy that does not have restrictions on entering a facility such as hospital care preceding coverage or preexisting medical conditions not being covered.
  
  
• Fixed premiums - As people grow older, their incomes often become fixed. If their premium is not fixed as well, they may have to drop coverage just when they need it because the premium has risen.
  
  
• Guaranteed renewals - This removes the possibility that the policy will lapse because it was not renewed.

There are many other considerations when purchasing long term health insurance. Review and compare policies carefully before making your choice.