Monday, 16 January 2017

long term care insurance

The advantages and disadvantages of having long term care insurance

Plenty of people start to think of long term risk-management, after reaching a certain age.
This is because as people gradually realize the cost of healthcare and how it’s going to affect their finances, they start to wonder how they are going to pay for it all.
Others do so because they desire to protect their savings in case they need to go to a nursing home or require some form of healthcare not provided by other insurance policies.

While planning to go for long term care insurance is a good step in securing one’s future and managing risk, attention must be paid to it’s advantages and disadvantages.

There are a few disadvantages when it comes to long term care insurance.
The purpose of insurance is to manage risk. Its purpose is to ensure that the one who has purchased that policy is in a position to weather it without suffering any kind of major loss.
However, there is a catch to this. Not all policies are the same. Each policy is different and that’s where it becomes important to pay attention to the details.
Many policies provide for the return of premium but it’s not often. Quite often, the premiums aren’t returned meaning that one can pay premiums for years without any benefit, except the security and peace of mind knowing that one is covered with the insurance. This is not to say that one should hope to use it but rather to take a sound financial decision.
A lot of policies, even if long-term, may not cover everything. Therefore, one policy may not be comprehensive enough to cover for all necessary expenses and risks.
long term care insurance quotes are often lower for younger and healthier people, as opposed to those who are older. If one can’t afford to pay premiums upon getting older, it may be necessary to discontinue the insurance policy and opt for something cheaper.

Regardless of the drawbacks, people still see the advantages of long term care insurance. In general, the advantages outweigh the disadvantages, especially in the long run.
One of the biggest is the security and peace of mind that one gets just by having such a policy. Knowing that one is covered provides the comfort that one is shielded from any sort of potential risk.
There is an actual protection of one’s wealth. In addition to the peace of mind that one gets that one is safe from likely risks, there is a protection of one’s life savings, which might otherwise end up being spent to cover for healthcare needs.
Another important advantage is the tax benefit. Some of the policies are tax deductible. Tax qualified plans can be deducted when filing one’s taxes. This indirectly makes the premiums cheaper than the actual amount.
There is also the benefit of choice. One is able to choose a nursing home, home healthcare provider or any other service, instead of being forced to choose a service provider one is not comfortable with.

Keeping these facts in mind, long term care planning can be done in a much more efficient manner, since one will be well aware of both the risks and the benefits.
All in all, it’s important to understand how a long term care insurance policy can affect you, both positively and negatively, and make a choice based on sound knowledge and understanding of the facts.


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