MMC10182019 - Page 52

Wellness The basics of long-term care insurance �� COURIER L 52 IFE, OCT. 18-24, 2019 �� Various insurance plans protect individuals from fi nancial calamity. Insurance works by requiring policy holders to pay a premium. In the event of an accident or incident, a claim can be fi led and the insurance company will reimburse the person for expenses, minus the deductible. Health insurance is one type of insurance that people have to manage their health and well-being. There’s also another, perhaps lesser-known insurance that can prove invaluable. It is called long-term care insurance. Long-term care insurance is an insurance product that is found primarily in the United States, Canada, and the United Kingdom. It generally covers assisted living needs, home care, hospice care, adult daycare, and other requirements of senior living or health management. People who invest in this are planning ahead for the times when they may no longer be able to care for themselves without assistance. It will help offset the ever-rising costs associated with specialized senior housing and nursing facilities. Traditional healthcare insurance and governmentsponsored plans (i.e., Medicare in the United States) will not pay for daily, extended care services. The AARP notes that these other plans may only cover a short stay in a sub-acute rehabilitation center or nursing home, or pay for a limited amount of at-home care. Long-term care insurance can help families fi nance the cost of medical care when all other options will not. Long-term care insurance should be looked into early in life, as policies often cost less if purchased when one is younger and in good health. People in poor health or already receiving long-term care services may not qualify for it outright. But there are some workarounds, including buying a limited amount of coverage or coverage at a higher “nonstandard” rate. Some policies do not require medical underwriting, and these may be advantageous to people with preexisting health conditions. When shopping for policies, look into how long the insurance will pay. Some policies include limits on how long or how much providers will pay for care, with some plans maxing out at two to fi ve years. Other policies may not implement a term limit. Speak with a tax specialist as well, as premiums paid on a long-term care insurance products may be tax deductible. Long-term care insurance is a way for individuals to fi - nance the often expensive costs for medical services that may be required as one ages.