Although most of us look forward to our golden years when we can finally relax and enjoy life, many of us also worry about what will happen if our health is less than perfect. Thanks to advances in medicine and technology over the last decade, we can look forward to living longer, but that could also mean we will require long-term care at some point. Given the fact that a stay in a long-term care facility can cost upwards of $100,000 a year, and that private health insurance policies often do not cover the cost of long-term care, worrying about how you will pay for long-term care is certainly understandable. One option is to purchase long-term care insurance, or LTCI.
LTCI is intended to cover the cost of long-term care. Just as any other insurance policy, if the conditions are met for coverage to apply, then the policy should cover the costs of your care. Unfortunately, not all policies are equal. Furthermore, not all companies are reliable. The elderly are often targeted for fraud or simply taken advantage of by people looking to make a fast buck. Because of this, you must be very careful when you purchase a LTCI policy.
Pay particular attention to the history of the company offering the insurance. Look for one who has a good rating and has been in business for ten years or more if possible. Also pay close attention to the conditions that must be met before coverage will kick in. Always have your estate planning attorney review a policy before you commit to purchasing the insurance. Finally, make sure that not only can you afford the premiums now, but that you will be able to continue to pay them after you retire. If you follow these simple guidelines, you should be able to find a LTCI policy that is right for you.