How to Shop for Long Term Care Insurance

One of the biggest challenges someone faces in their life is whether or not there will be a time when they will not be able to take care of themselves. We need help in the first few years of life and often for the last few years of life. As infants we had adults take care of us, but when we are adults (or adolescents) and need assistance who is there to help us and how do we pay for it?

Health insurance and Medicare only cover medically necessary care and only as long as you are getting better. For example if you have an accident or a change of health like a stroke and can't get out of bed yourself or walk, you would be treated until your condition stabilized and then you would be released. If you still couldn't do those things you would either have to go to a facility where the staff will take care of you or return home where your family would take care of you or hire help.

Health insurance, Medicare, and Medicaid do not provide much for home care, assisted living care, custodial care, they primarily cover nursing home care. Where do you want to receive care?

During the treatment and recovery process your health insurance and Medicare pay for about 100 days total or as long as you are improving and also you pay a deductible that starts after day 20. After health insurance and Medicare stop paying you either pay yourself or apply for Medicaid, unless you have long term care insurance. Medicaid is welfare health care and to qualify for Medicaid you may have to 'spend down' your savings to qualify.

Now you know the health care scenario. If you are considering long term care insurance you need to know how to buy it. First, choose a company with strong financial history (Genworth, etc). Next you need to choose a plan. Most companies offer similar plans for similar costs because their risk and costs will be similar (like a Nissan Maxima vs Toyota Camry cost the companies about the same to manufacture and sell).