If you want to help cover costs in case of a long term health issue, long term care insurance is what you want to consider. These benefits cover those costs that are not normally covered by a standard health insurance policy and can make the difference between a healthy financial future and one that is difficult to overcome. Whether you are young or old, the investment in this type of insurance can make a big difference.
Whether you choose a non-tax qualified policy or a tax qualified one, you need to understand the offerings to be sure that you make the right choice for your own life. A tax qualified policy means that you must be unable to do at least two daily activities and need care for at least 90 days in a year. This type of policy is non-taxable. A non-tax qualified policy is for a person that is unable to do at least one daily activity. This is a less strict policy, but it is taxable, which can mean you pay more in the long run.
Long term care coverage has several benefits. One of these is that care facilities, such as assisted living, adult daycare, respite care, nursing home care, and hospice care is normally covered. If you purchase home care coverage, you can also get in home care, such as a nurse, caregiver, therapist or companion paid for as well.
The biggest benefit is knowing that yours or a family member’s care will not be a financial drain. While government programs cover a portion of some of these costs, they will not cover home health care, which is what most people want. Consult your insurance professional to determine what long term insurance policy is available for you.