Long Term Care Insurance

As you, a parent, or other relatives get older, you become more aware of the impact that long term care costs can have on a lifetime of savings and investing.

Through KeyCorp Insurance Agency USA Inc., your advisor can help you decide if long term care insurance should be a part of your financial plan. Today there are many policy options available, including combination products that provide a death benefit to your beneficiaries if the long term care feature is never needed. You'll get the advice and guidance you need to help you choose which policy is right for you from some of the nation's leading insurance companies.

To get started, here are answers to a few frequently asked questions.

Why long-term care insurance?

Long-term care expenses are costly and can wipe out everything you've worked hard for including your retirement savings.

Health or disability insurance plans do not provide coverage for long term care expenses.

Federal or State assistance programs restrict the amount of assets you are allowed to keep before long term care coverage is provided to you and your choices of facilities and services are limited.

Long term care insurance allows you to keep your dignity and make your own decisions. You can choose the facility you want and may often be able to receive care right in your own home.

How does long term care insurance work?

Today there are a variety of insurance plan options to choose from that provide coverage for long term care expenses and some can also offer a death benefit for your beneficiaries in the event that coverage is never utilized.

When you purchase long term care insurance, you purchase a policy that pays a pre-determined amount, usually a daily benefit, toward the cost of care and you are free to choose the facility or care service you want.

Generally, benefits become payable when the insured person is no longer able to perform a pre-established number of "activities of daily living" (ADLs), these may include dressing, bathing and feeding oneself.

Benefits may also be payable in the event of diseases such as Alzheimer's or Parkinson's or when a physician determines that long term care is necessary. Be sure to review the conditions under which benefits are payable before purchasing coverage.

You decide how long you want benefits to be paid, the longer the benefit the higher the premiums will be. Once you are eligible for payments, there is usually a waiting period before payments begin, the longer this period the lower the policy premiums will be.

Who should consider long term care insurance?

You should consider long term care insurance if you are approaching retirement, if you have significant savings that could be affected by long term care needs or if you want to make sure that you have control over your long term care needs.

Generally, long term care insurance makes the most sense for those with between $250,000 and $2 million in liquid assets. The combination products now being offered allow the insured to provide a death benefit for their heirs should the long term care feature of the policy never be needed and may be an option for higher net worth individuals as well.