Most people know that they need to purchase various types of insurance, including coverage for their car, home and health. They may not have considered the need for long-term care insurance, however.
Long-term care insurance pays for care including nursing care, home health services, help with activities of daily living like bathing, dressing or eating and other items. It is used by people who are unable to care for themselves because of an illness or disability.
Policyholders can choose from a range of coverage, depending on their individual anticipated needs. The level of insurance a policyholder chooses may depend on their current health status, their gender, family health history and available friends or family members who could act as caregivers.
The cost of the policy depends on the maximum amount the policy will pay per day or year, how old the policyholder is when he or she buys the policy and any other optional benefits.
Some policies will pay for long-term care for a few years or for as long as the policyholder lives. It may be helpful to ask about the policy’s premium rate history to understand how the rates for coverage may increase over time.
In Texas, Medicaid pays for healthcare and some long-term care expenses for people with low incomes. To qualify for Medicaid, beneficiaries must meet specific requirements. Long-term insurance can be part of an effective estate plan and there is additional information available to those who need assistance.