Aug 30 2010

Getting ready for Long Term Care Insurance (Part One)!

Most of us rely on Medicaid, disability insurance, personal savings and other resources to deal with the challenges of old age. We rarely – or not – think about the possibility of staying in nursing homes at some point in the future, because it only makes us more vulnerable to pain and anxiety. Almost everything in your life is insured be it your home, you car or any appliance everything has always a back-up plan to take care of it should anything untoward happen. Many of us fail to think about insuring ourselves, we are also similar to machines and other gadgets and something or the other could go wrong at any point of time, especially when one is old and susceptible to illnesses. For all those who need something for their old age, long term care insurance is the biggest gift you can give yourself.

There are many misconceptions surrounding Long Term Care Insurance and here are a few details of the myths and facts of this benefit.

Myth: People think that disability insurance will take care of their long term care requirements. Fact: It is absolutely false! Disability insurance and long term insurance is different to say the least and while the former supports you when you can no longer work and completely disabled. Disability insurance pays if you can not work due to disability; care insurance long term applies to care in a nursing home or center. In addition, most disability insurance ends when you turn 65, but typical insurance long term care comes into force after the age of 65.

Myth: Medicare / Medicaid to cover all costs in the long-term care to Medicare and Medicaid do not shoulder all the costs of all LTC if you are not impoverished. You must meet the poverty rate in order to contribute to Medicare.  The quality of care provided to Medicaid homes are not the same as the care is provided in private homes.

Myth 3: My kids will take care of me when I am old, if you are a parent; you might think you do not need insurance for long-term care because you have children who care. May be or may be not. Open your eyes to the reality that as children they will one day raise a family, and their focus will be on their own family and you would come second in their priorities. (Contd)