Florida Long Term Care Insurance
Buying long term care insurance is increasingly a more expensive hedge against events that may never transpire. With annual premiums climbing to the 2,500 to 5,000 dollar range, it is a hard pill for many people to swallow.
Then again, if you are among the people who require extended nursing care or end-of-life care, then ask yourself if you have the 250,000 dollars to cover the typical bill. The average annual long term care coverage costs are up to 70,000 dollars per year. That number includes skilled nursing care.
In some cases, you may require long term care for help with activities of daily living (ADLs) only as a result of a neurological impairment, for instance. Others may require more involved medical and nursing care in their home or at a full spectrum care facility.
Of course, you do not have a crystal ball, so if you did need LTC, you would ideally want it to cover any scenario.
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ADLs are defined as the self care skills you need to perform to get through a typical day. Such duties include feeding yourself, bathing, walking, dressing, shopping, cleaning house and taking medication.
If you are medically incapacitated in some manner that impedes these daily tasks, then long term care coverage kicks into effect.
Any number of medical professionals may perform an assessment of your ability to perform ADLs. If they decide that you are unable to do these tasks sufficiently, they make recommendations for professional assistance. Such recommendations are the official route to get long term care benefits.
A whole spectrum of care exists, from where the care is given and what types of assistance are offered. For instance, there is at home care, which can involve a majority of the same care provided in an assisted living facility.
The spectrum of living facilities steps up from a retirement type home in an individual apartment or household where medication management, laundry services, cleaning service and meal preparation are all offered to those who need it.
From there, it grows to nursing care, hospice, respite care and convalescence. Not all medical problems are chronic, though some are acute. Others are going to last a lifetime while some just happen once, like a hip replacement.
Blurring Lines Between LTC and Life Insurance
At this point you might wonder why you would buy such a specific policy. You may never get to use it and would have nothing to show for all the money you paid for the policy premiums. Well, as the population ages, the cost of care sky rockets.
Basically, nearly 30 percent of the population is over 50 with that number growing at an astonishing rate, because of the aging baby boomer generation. Costs for at-home and assisted living range from 12,000 per year to 70,000 per year, depending upon the level of services delivered.
Life insurance policies that allow advances on death benefits or provide cash value may prove useful in lieu of long term care policies. Though, long term care provides specific benefits of care that are relevant to the assisted living models. They may provide money allocated specifically for supplies, for instance.
Life insurance is a good alternative to people who already have pre-existing conditions that would preclude them from qualifying for long term care insurance. Another way people may block themselves from coverage is by waiting too long to buy LTC. Policies for young people are rather affordable, but climb into the thousands of dollars per year range for those who are older.
How to Buy Long Term Care Insurance
As with any insurance shopping, always decide what you need first. Florida Department of Insurance includes a worksheet.
The limit on insurance differs among different plans. On average a plan will pay out for two to five years. Though, what may determine that rather large range is the amount of money an individual requires for their care.
For instance, someone who has Alzheimer's, diabetes, heart disease and needs knee replacement would be more involved than end-of-life palliative care for a terminally ill cancer patient.
The other factor that contributes to the cost of care is the location where care is delivered. For instance, if you have the luxury of staying in your home, it usually allows you to receive services for less money. The reason is because you are not having to pay extra money for expensive facilities, such as a nursing home.
The other factor is who is delivering care. If you prefer receiving care in a center, then paid professionals provide all care. If you can stay at home and have family or friends who are willing to pitch in, then it can cut costs. It also may be more comforting for you too.
Comparing Policies and Quotes
Once you decide how much insurance to buy it is time to go shopping. Getting quotes is the relatively easy part. Comparing insurance is a little trickier. Always make sure the insurance carriers are creditworthy and can pay out claims.
Look at A.M. Best to determine this. Only do business with insurance companies that have the highest ratings.
Long term care insurance premiums are not fixed and can increase. Find out what insurers have historically honored keeping fairly stable premiums from one year to the next. Consumers are an excellent resource. They write about their experiences with insurance companies, whether disappointing or satisfying.
That means, do quick Internet searches to find out about people's experiences with different insurance carriers.
Of course, always read the policies that insurers are offering you. If you have questions, always ask. You may just be happily surprised with some of the extra benefits that a policy has in store for you. If a policy offers less than its counterparts, it might be best to skip it.
Either way, it is important to protect yourself from financial ruin by having a long term care insurance policy. Until the crystal ball's predictions are perfected, you need to be prepared to deal with any number of crises in life. Hopefully you will never need to use LTC.
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