Alternatives For Funding Long-Term Care Insurance
There are a number of advantages for long-term care insurance. However, this type of policy may not be suitable for everyone. So the first question before going for long term care insurance is that do I need one for myself? Even if you go for this policy, consider several parameters such as your personal health record, finances, lifestyle, retirement plans and other things. Premiums are generally higher in this type of coverage. So, if you do not wish to utilize your long-term health care insurance for paying up your healthcare costs, you can always explore some of the other alternatives.
Using your life insurance coverage
Most people have a life insurance cover. There are several covers under the LIC policy and many companies often include extended care and other benefits with the existing LIC cover. You are also entitled to use your own death benefits to pay for extended care during a chronic illness. However, using up your LIC means that there is no scope for any insurance payout to your family after your death. Therefore, this type of solution can be useful only if you and your family enjoy a good health record throughout and are confident that you may not need long-term care insurance. It is ideal for people who are single and are leaving behind no beneficiary.
Longevity insurance - a suitable alternative
Some people prefer longevity insurance, especially those who expect to live longer, that is above 80 years. For them, this amount can be used up for paid care in nursing home or rehabilitation centers etc and can be a good alternative for long-term care insurance. However, many people still go for a long-term care cover that serves them once their longevity cover is exhausted. It can be sort of a confidence booster for the person after retirement.
Financial Alternatives
Many people do not buy any insurance. But they prefer to pay up their long-term costs through other financial alternatives. These may include options such as annuities, personal savings accounts and general retirement savings. This may save up a considerable amount of money as you do not have to pay for a separate long-term care insurance cover. However, in general, this is not a smart decision because you may exhaust your existing retirement income, which could have been used for other purposes in the future. At the same time, for some people, the savings amount is also not enough to pay for extended care throughout.
Medicare and Medicaid
Some of you may think that Medicare does not have provisions for long-term care. However, there are certain benefits under this type of policy that provide a percentage of coverage for long term care and the amount is generally between 40 and 50%. This may include long-term stay in nursing home as well as extended care required at home or a rehabilitation center. Although this is a very affordable alternative, it may not cover all the necessary financial cost. The list of hospitals and care giving centers are also limited.
Those having a very strong and supportive family and can arrange for care giving facilities, need not have to look for long-tem care insurance. Those who are members of community-based programs also get extended health care facilities.