Long Term Care Insurance - Essay Example

But, it is not that easy to get long-term –care insurance so late, because the cost of insurance may be quite huge or insurers will reject applicants at age 60 for health reasons. Therefore, the best age to buy a long- term –care insurance is the mid-50s. One of the reasons is that the price of insurance keeps growing from 3 to 4% each year. For example, the price for the long –term care insurance annually for a 55-year-old man nowadays is approximately 1,032$. But, if he will wait until his 65s he will purchase insurance that will cost 2,770$ as it grows 5% per year.

The other benefit of buying long-term – care insurance at the age 50s is that with time the risk of health problems increases. The insurers are quite strict in writing their policies. The statistics from the American Association for Long-Term Care Insurance show that 25% of applicants at age 60 to 69 were not offered insurance cause their health worsened. (American Association for Long-Term Care Insurance, 2014)If the patient decided to purchase long-term insurance it is quite important to understand all terms and conditions of the insurance.

The main feature of long-term- care insurance is Inflation protection. All long-term-care insurance must include a 5% compound per year to protect from inflation. This is quite an important option as it helps to insure all benefits of insurance with the rising cost of living. The alternative plan of care benefits. This option allowed insuring of all additional requirements of the patient. This feature helps for patients receive alternative supplies or services that were not included in the benefits booklet.

Benefit period. Accordingly, to the statistic from the US Department of Health and Human Services, a person spends approximately 2.4 years in a nursing home. Therefore, patients are able to choose the duration of the benefit period accordingly to their health. A daily benefit. This option allowed a person to decide how much of the covers they required on a daily basis. Restoration of benefits. This feature helps to restore all benefits of the insurance for a specified period of time. ( Long Term Care Options,2014)Therefore, it is quite important and better to purchase long-term –care insurance on time to save your health and your money. (The Wall Street Journal,2012)