Long Term Care Insurance Policy Premiums are based on:
• your age
• kind of policy you choose
• daily benefit amount to be paid
• number of years the policy will pay benefits
• after you qualify for the benefits the number of days (if any) before the company will start to pay benefits
• choice of inflation protection.
Some companies will insure you for a higher premium if you have a particular pre-existing condition.

Age is one of the most important factors which influence your Long Term Care Insurance Policy Rates and Premiums. If you are in your mid forties your annual premium can only be a few hundred dollars as opposed to several thousand dollars if you are in your in mid seventies. The cost of benefits you choose is calculated differently by different insurance companies. It is due to this reason that you may see significant differences between premiums for similar benefits.

A simple example a Long Term Care Insurance Company may calculate the premium based on every $10 of the daily benefit you choose. The premium for daily benefit of $100 would be $950 per year, if the company charged $95 for each $10 of daily benefit. A similar package of benefits may cost $150 with another company making the annual premium rise to $1,500.

Your LTCI premium will also be affected by the method and amount of inflation protection you choose. This nearly doubles the cost for those not expected to need care for many years – usually for those in their 40s and 50s. Your ability to change LTCI policy diminishes as you age but your probability of developing health conditions which make you ineligible to apply for new benefits increases.

Keep in mind that LTCI is an investment you hope that the rest of your life is financed by. It is important to buy a policy from an established company with experience in LTC insurance.

With The Tax Qualified (TQ) Long Term Care Insurance Policies you can deduct some or all of your premiums from your federal and state income taxes as a medical expense. Your age, along with your medical expenses which exceed 7.5% of your adjusted gross income (AGI) will influence the actual amount that can be deducted. At your current age, the specific amount you can deduct each year increases by an amount that is calculated by the federal government. Each year your accountant or your insurance company can give you the information regarding your deduction with reference to your LTCI premiums. Benefits received under TQ policies will not be taxed as income.

The Non-Tax Qualified (NTQ) policy premiums can not be deducted from your income taxes. The benefits received under such a policy are also not tax free. However there are other advantages with NTQ policies. The NTQ LTCI policies under the federal law pay benefits sooner than TQ policies and may have more generous benefit triggers. While Tax Qualified policies only pay if you are unable to perform 2 Activities of Daily Living (ADLs) out of a list of 6, NTQ policies begin to pay benefits when you are unable to perform 2 activities of daily living out of a list of 7.

TQ policies require a health care professional to certify that you will need at least LTC services for at least 90 days. This verification is to establish that the LTC needed is not short term and this is not a waiting period before the benefits begin. Your insurance company will still be required to pay any benefits even if you didn’t need care for the full 90 days - except for the duration Medicare paid for your care if any.

There are different ways to buy a Long Term Care Insurance Policies. You can buy it as an individual, as a member of a group or faith-based organization or as an employee or a family member of a person who is a public employee or in the military service.

As an individual you will have to meet all the current Long Term Care Insurance requirements of the state you live and buy your insurance. But if you buy this insurance as a member of a group or a nationwide organization you may not be required to meet the same requirements. Before you buy, find out the details and advantages of buying this kind of policy in your state as a member of a group.

LTC coverage can be available to some through the Federal Long Term Care Insurance Program (FLTCIP) due to their own or family member’s public/federal employment or military service. The FLTCIP is employer based system and does not pay any part of the LTC premium but it has it’s own LTC insurance program. AARP (American Association of Retired Persons) and some private employers and faith based organizations also sponsor their own private LTC insurance.

Most LTC insurance policy purchased in one state will pay benefits in any state. Places where care is provided is different from state to state and how these places are defined can also be different. Often when the time comes to receive the benefits, the care providing places in one state maybe different than in the state where the policy was purchased. If there is a difference regarding how these care giving places are defined between two states, the laws of the state where the policy was purchased will apply.

According to where benefits are paid Long Term Care Insurance Policies can be divided into 3 broad categories - Home Care Only, Nursing Home and Residential Care Facility Only and Comprehensive.

Home Care Only
As the name suggests Home Care Only policies cover care in your own home or a community setting. This type of Long Term Care Insurance Policy does not cover care in Assisted Living Facilities or Nursing Homes. This kind of policy must include benefits for home health, adult day health care, hospice, respite care, personal care and homemaker services.

Nursing Home and Residential Care Facility Only
This kind of policy covers care in a nursing home or any place that provides assisted living care as long as this place is licensed as a Residential Care Facility for the Elderly (RCFE). The benefits of this kind of policy is not the payment for room and board in these facilities. The policy benefits include coverage of all long term care services you receive in either of these facilities upto the policy’s maximum daily benefit amount.

Some of the RCFE include small neighborhood homes also called board and care facilities, retirement homes and specialized community facilities for patients with cognitive impairment (dementia) from Alzheimer. In this kind of policy, the assisted living benefits must equal to at least 70% of the nursing home care benefit.

Comprehensive
The Comprehensive Long Term Care Insurance Policies cover costs rising out of care in a nursing home, assisted living facility, home care and community care (adult day care). Certain requirements mentioned in the policy must be met before the LTC insurance benefits can be paid with this kind of insurance. LTC Comprehensive policies sold by different companies require different criteria to be met. When you are unable to perform two activities of daily living (such as bathing, using the bathroom, dressing eating etc.) or you have a cognitive condition that requires supervision, Comprehensive Long Term Care Insurance Policiy will pay you the benefits. Whether care is provided in a nursing home, at your own home or in an assisted living facility the criteria required for the benefits remains as described above.

Long Term Care is help that is needed to carry out daily activities like eating, bathing, dressing, using the bathroom etc. when you have a physical disability or cognitive impairment. This kind of non-skilled care is not intended to cure you and is not received in a hospital. Long Term Care Insurance pays for costs rising out of long term care services received in your own home, at a nursing home, adult day care or other assisted living facilities. Traditional health insurance, Medicare or Medicaid do not cover costs rising out of such services.

Medicare is the Federal Health Insurance program which aims to provide health services for people 65 or older. It also covers those who have disabilities under the age of 65, suffering from ALS or Lou Gehrig’s disease, or those dealing with permanent kidney failure requiring dialysis or a transplant. Medicare pays only for short term skilled care such as specialized inpatient hospital stays for a limited time only. Some out patient services such as doctor visits, prescription drugs, diagnostic tests and preventive care are covered by Medicare.

Medicaid is a state based program supplemented by Federal Funds which aims to provide health services to the poor and impoverished according to your state’s guidelines. Medi-Cal is the Medicaid Program in California. Only if you meet your state’s poverty criteria are you eligible for Medicaid. In other words you need to expend all but $2000 of your assets. Medicaid is a welfare program.

Medigap also called Medicare Supplement Insurance is private supplemental health insurance policy. It covers some of the costs that Medicare does not cover. It helps pay coinsurance, co-payments or deductibles of costs of services covered by Medicare. There are only 12 standardized Medigap Policies which have the same benefits regardless of which private company sells it to you.

Long Term Care Insurance is discussed in length both in the health care and financial circles. Children born between 1946 and 1964 are known as Baby Boomers. When the last of the baby boomers reach 65 by 2030, 40% of them will live to celeberate their 90th birthday. With increased life expectancy, the chances of needing long term care also increases over the age of 65. At some point in life 70% of people past the age of 65 will need some kind of long term care services.

Most senior citizens live on fixed incomes. They are barely able to keep up with the rising cost of living, mortgages and taxes let alone meet the high and ever increasing Long Term Care Costs . Majority of the seniors desire to spend their last years with dignity and independence in the comfort of their own home.

Many senior citizens have serious medical problems forcing them to rely on family for their daily living activities. Children are unable to care of their elderly parents because they have moved away due to their work or have young children of their own to take care of.

An injury or an accident can happen to anyone at anytime forcing them to seek long term care. Medicare and Medicaid do not cover long term care expenses. People buy long term care insurance to pay for the high long term care costs.

Long Term Care Insurance has a special significance to baby boomers. About 76 million children born between 1946 and 1964 are referred to as the Baby Boom generation. This generation represents roughly 28% of the population. By 2030 this generation reaches retirement and the senior citizens population will be nearly twice what it is today. The population of 85 and above will be more than 300% by 2050 according to demographic studies.

Even with wide spread attention to long term care insurance a majority of this generation has not purchased long term care insurance . 30% of this generation falsely believes that they have long term care insurance coverage. This year, 2010, the oldest boomers will turn 65 and the youngest in 2030. The youngest boomers will turn 85 around 2050 when the need for long term care services is felt the most.

Medical advances results in increased life expectancy which leads to increased dependency on long term care services. Home based informal long term care services is disappearing due to smaller family size, job related mobility, increased divorced rates and people choosing to remain single.

Baby boomers must make long term care insurance a key factor in their retirement planning. Recognizing the possiblity of needing long term care services and buying early a long term care insurance policy is integral to retirement planning. With long term care insurance baby boomers can rest assured that they will not become a burden to their family or the sate. Long term care insurance not only protects savings but gives this generation the freedom to choose the kind of long term care services they want and where they will receive it.

You have realized the importance of Long Term Care Insurance.You’ve learned about reputable Long Term Care Insurance Companies and their various Long Term Care Insurance Products. So you’ve done your home-work and now in search of the most affordable Long Term Care Insurance Policy available to you. The following are few factors which will help you decide the Long Term Care Insurance policy you want to buy.

The Period Of Benefit – is the duration of time that the insurance company will pay for your long term care, after you have filed a claim. This benefit period can be between 1 year to 10 years or even a lifetime.

Daily Benefit Amount for Nursing Facility – is the per day maximum amount the insurance company will pay for your long term care in a nursing home or assisted living/residential care facility.

Daily Benefit Amount for Home Care - is the per day maximum amount the insurance company will pay for your long term care in your home. This is usually in terms of a percentage of the nursing facility benefit and can be 50%, 75% or 100%.

The Deductible or Elimination Period – is the duration of time (which can be from first day of coverage to one-year) you must pay out of pocket for your long term care before your long term care insurance begins paying your benefits.

Allows for Inflation – Long Term Care Insurance Policy with inflation protection allows your daily maximum benefit to keep pace with inflation.

Consider your current financials, your assets, savings, and how and where you would want to receive your long term care before buying Long Term Care Insurance. Look for a financially sound Long Term Care Insurance Company with a good rating. Understand the claims process and the payment history of the company you are considering buying your insurance from.

Check out the costs of long term care in your state and the maxium daily benefit of the Long Term Care Insurance policy. Choose a Long Term Care Insurance policy which has the inflation rate factored in its premium. Some Long Term Care Insurance policies offer non-cancellable and guaranteed renewable features with fixed premiums and stay in force as long as the premiums are paid. They also work with your Social Security providing coverage even if you become unemployed and allow you to receive benefits in case you have an income loss due to partial and/or total disability.

There are Long Term Care Insurance policies with options to choose a 10 year or paid up by age 65 payment plan. Few come with features to apply for additional coverage and the freedom to choose the benefit payout – either reimbursement or indemnity. Choose a Long Term Care Insurance policy with maximum coverage to pay for your long term care costs and protect your savings so that you can enjoy them if you recover.

Long Term Care Insurance policies cover expenses that are not covered by traditional health insurance, Medicare and Medicaid. Long Term Care Insurance enables you to receive chronic care needed to help perform daily activities if you had a disability or an ongoing illness for a long period or for the rest of your life. Besides help with activities of daily living, Long Term Care Insurance also covers costs resulting from dealing with cognitive impairment from Alzheimer’s disease.

Long Term Care Insurance policies give you the freedom to choose the kind of long term care you want, and where you want to receive it instead of having to go where you are taken. Long Term Care Health Insurance protects you and your family from financial burden and prevents you from wiping out life savings and assets in the event you needed long term care. Buying early a Long Term Health Care Insurance not only locks in rates which may not be possible to receive at a later age, but also guarantees coverage when you need it the most. Long Term Care Insurance not only protects your assets but should you overcome the need of long term care, you still will have your savings to enjoy when you recover.