Long Term Care Insurance
Payment for Rehab Hospital, Home Health Care
Pays some costs of rehab hospital, home health care, nursing home.
Medicare only pays costs for first 100 days of care following 3 or more days in hospital.
Home health or nursing care unrelated to a hospital stay is not paid for by Medicare.
Consumers Report recommends buying long term care insurance only if you can afford the premiums and possible rate increases.
Consumers Reports recommends people wait until age 64 or age 65 before purchasing a policy.
If considering a policy, check the Weiss Rating to make sure the company is financially strong and will continue to operate. www.weissratings.com
Many sales people selling long term are insurance use false statistics to sell this product. Below are some of the false statements that have been used:
Sales falsehood: “You need to buy this when you are young, more than 40% of people who need long term care insurance are under age 65.”
Fact: Less than 1% of people under age 65 require nursing home care.
Sales falsehood: “There is a nearly 50% chance that a person will require 24-hour care in a skilled nursing facility.”
Fact: 1% of those ages 65 to 74 live in a nursing home, 4% of 75 to 84 year olds, and 19% of those age 85 and older.
Sales falsehood: “If you are over the age of 65, you don’t need to purchase the inflation protection rider on this policy or a policy with inflation protection.”
Fact: The average age for admission to a nursing home is age 83, and costs are expected to rise more than 5% a year. At age 65, you face 18 more years of inflation before you may use the policy.
Sales falsehood: “This policy is guaranteed not raise your rates.”
Fact: The insurance company is only guaranteeing that they won’t single you out individually and raise your rates alone. But, they can and do raise the rates of whole classes of policies at the same time. Your rates can be raised as a class.
Shoppers Guide to Long Term Care
Texas Long Term Care Partnership
Houston Long Term Care Agent