While long-term healthcare insurance is a great idea, it is not the right decision for everyone. It is only a small portion of a country’s population that will see the benefit of it in terms of affordability and viability. If you are trying to decide whether it is right for you, you need to also be on the lookout for scams as well!
As people age, the need for day-to-day assistance also increases. Some people need in-home care, while others may choose to live in a nursing home for a while. No matter what the choice is, they will need some way of paying for it. In order to maintain long-term healthcare insurance, you are required to pay for it each year until you die. There are a lot of policies out there that are cancelled by the policy holders who are on some sort of fixed income pension because they are unable to pay for the premiums as they get older. If this is your situation, where your only source of income is form Social Security, not purchasing a policy may be the best decision. Even if you are not in this financial situation, if you find that paying for basic bills, such as utilities, is stretching the budget too far, you should avoid paying for a policy. The reason for this is because this type of policy is only good for people who have significant assets to remain independent or just to not pass on the burden to their family.
Which company to choose?
This article does not endorse any particular company or policy. This is because there are hundreds of insurance companies, each offering dozens of policies depending on your situation. Therefore, comparing policies is a difficult task. Some will provide a fixed amount each day your receive care, while others will pay for a percentage of the total costs of your care. You should be wary of these types of policies unless they offer some sort of inflation protection. If the policy doesn’t take inflation into account, then the policy may be worthless. A policy that would have paid $150 a week for care 30-40 years ago wouldn’t be of much use today with the soaring costs of long-term healthcare! In fact, it may barely pay for a day’s worth of care today!