Thursday, January 20, 2011

What's the difference between Long Term Health Insurance


What's the difference between Long Term Health Insurance?
What's the difference between Long Term Health Insurance and Long Term Life Insurance? I want to make sure my parents are probably covered as they are now in their 50's. The goal is to get them covered for in house nursing care instead of a nursing home.
Insurance - 5 Answers
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1 :
Long Term CARE insurance is coverage when they are too sick and cannot perform 2 or 3 of the normal life duties such as toileting, eating etc. and need someone else to do it for them, such as nursing home or caregiver. The younger you are when you purchase this, the cheaper it is. Health Insurance is medical insurance for when you visit the doctor or hospital
2 :
Read the policy.. since it differs for every policy
3 :
Long term care insurance covers services such as skilled nursing home care; some policies also cover home health care, if it will prevent the insured person from a nursing home stay (which is WAY more expensive). Term Life Insurance covers a person for a set number of years, such as 5, 15, or 20. At the end of the term, there's usually the option to renew the policy (without providing evidence of good health) for another term, but at the rate for the person's new age. Typically, term policies can be renewed up to a maximum age -- so if they live past the maximum age, they're left with a policy they cannot renew. If this is an issue, you might want to consider a "Whole Life Policy," provided you've confirmed the coverage won't terminate or the face amount reduce after a certain age, like 99.
4 :
Well, you are looking at LONG TERM CARE insurance, not long term health insurance. But you have to read the coverages VERY carefully, as most of the time, they don't do what you think they do. You'll have to talk to a local, independent agent to get quotes on exactly the kind of coverage you're looking for - and have them explain exactly WHAT is covered, for HOW LONG.
5 :
Long Term Care insurance covers the cost of a prolonged stay nursing home care or full-time in-home care (Medicare covers only short-term stays, such as a recuperation period after an operation). You can read more about it here: http://www.longtermcarewiz.com/ . There isn’t really any long-term life insurance, although there is term insurance for long periods of time, such as 20 years, as mentioned by others. Whole life insurance covers the whole life, until death, no matter how long that period is. Perhaps you are thinking of a third alternative that many people favor called single-premium life insurance with a long-term care rider. Single-premium life insurance is paid for upfront with a lump sum. What is great is that the amount the policy pays, the death benefit, will be double or even triple the lump-sum payment, depending on the age of the person taking out the policy. In the case of 50-somethings like your parents, the death benefit could be as much as four times the premium amount. A single-premium life insurance policy will never be cancelled for missed payments, since everything is paid for upfront. The death benefit will be paid to the beneficiary(s) tax-free. Here’s the cool part for your parents: The policy can be structured to allow tax-free access to the death benefit to pay for long-term care! If the money is never used for long-term care, it will pass to the beneficiaries just like normal life insurance. With traditional long-term care insurance, you make the payments and if it is never used, the money is gone—just like regular health insurance. Single-premium life insurance guarantees the money will be used, one way or another.


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Posted by Health Insurance at 1:23 AM