What You Need To Know About Long Term Care
Elderly people require Long term care when they need someone to care for them because they are no longer able carry out a number of every day normal activities unaided. These activities require assistance with day to day personal actions such as bathing, putting on clothes or toileting and can occur at home, in residential or nursing care.
The need for care can occur instantly without warning, such as the result of a stroke or heart condition. On the other hand the need for care could evolve progressively as the person’s dependency increases due to lack of mobility or dementia.
Why take out a long term care immediate needs policy? Essentially predicting life expectancy is not a precise science. When people pay for their own care they may live longer in a good care home but their money could run out. An insurance care plan policy guarantees life time payments.
The risk of a life time care insurance policy is that if a person dies early the original outlay is lost unless there is an element of insurance against premature death.
Long term care insurance plan premiums are calculated based on the individual’s life expectancy. this is forecast by reference to medical information provided by the person’s family doctor. Also insurance companies endeavour to speak to care home staff for an up to date hands on assessment. The cost of a care plan is less relative to correspondingly deteriorating health and frailty.
The amount of long term care insurance payments required is determined by the monthly cost of care less the person’s state pension, benefits and other income such as private pensions. The balance required to meet the care fees bill is the shortfall. It is this regular shortfall that can be paid for life by payment of a once only lump sum to an insurance company. It is possible to pay extra to make sure that the benefits increase each year in line with rising care costs.
If a care provider will agree to keep their annual care fee increases to say five percent each year, the long term care insurance plan can be structured to match this rate for the rest of the persons life.
The only potential snag is that the person’s health deteriorates to such an extent they may need to move to another more expensive care provider. However there may be help in the form of a nursing care contribution or even fully funded continuing care. In the case of the latter, further care fees payments may not be necessary and the care plan policy benefits can be credited direct to the individuals account.
Long term care plans have a significant tax saving benefit. This is because there is no tax liability on the person in care when benefits are payable direct to a registered care provider.
before to commence providing for long term care fees be sure to access Barbara Davies’s vital free report concerning long term care insurance policies.
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