Essay On Long Term Care Insurance

Long-term care insurance pays for nursing home expenses as well as home health care. The insurance is meant to cover the cost costs associated with long-term care for those who have had strokes, chronic diseases, or Alzheimer’s diseases, as well as those who can simply no longer manage to live on their own. Moreover, it is another form of disability insurance, and its downside is that it is expensive according to Keown (2007). However, there are plenty of cost-benefits to purchasing long-term care as it is meant to protect you against the financial consequences of the high cost of increasing life expectancies and the resultant rise in the chance that you may eventually need some level of care. In other words, long-term health care insurance is meant to protect you against the financial consequences of such cost.

With most policies, these benefits are not subject to federal taxes are available to individuals over the age of 40 (Keown, 2007). Equally important, there is a Partnership-eligible long-term-care insurance program, which most states now allow you to keep some of your assets if you exhaust all of your benefits from an eligible long-term-care policy and have to rely on Medicaid. For example, if your policy provides total benefits of $200,000 (usually your daily benefit multiplied by your benefits period), you’ll be able to protect an extra $200,000 in assets above the state’s Medicaid limits after using up all of your policy’s benefits (Asset-Protection Twist). As a matter of fact, state laws on how to qualify for Medicaid differ, but you generally can’t have more than $2,000 in countable assets, including investments. A spouse who lives at home can usually keep about $115,000 while the other spouse is in a nursing home or other care facility. You can usually keep your home and a few other