There are various Long Term Care Insurance Policies. The most popular are the “Indemnity” or “Expense Incurred” where you choose the benefit amount. A fixed benefit amount is paid by an “indemnity” or “per diem” policy regardless of what you spend. The actual expenses for services received up to a fixed dollar amount per day, week, or month is reimbursed with an “indemnity” or “per diem” policy.

“Integrated Policies” or policies with “Pooled Benefits” offer a total dollar amount which may be used for different kinds of long term care services. Usually there is a daily, weekly, or monthly dollar limit for long term care expenses covered by the policy. Let’s say for example you buy a policy with a maximum benefit amount of $300,000 of pooled benefits. With this policy you will have a maximum daily benefit of $300 that would last for 1,000 days if you spend the maximum daily amount on care. You will receive benefits for more than 1,000 days if your care costs less than the maximum daily amount of $300.

There are three broad categories of LTCI policies based on where benefits are paid – Home Care Only, Nursing Home and Residential Care Facility Only and Comprehensive. Care received in your own home or a community setting is possible only with Home Care Only policies. Home health, adult day health care, hospice, respite care, personal care and homemaker services costs are coved by these kinds of policies.

Costs rising out of 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) is covered by Nursing Home and Residential Care Facility Only policies. This policy pays for more than just room and board in these facilities. The costs of all long term care services you receive in either of these facilities is paid by this policy up to 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.

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). LTC Comprehensive policies sold by different companies require different criteria to be met before benefits can be paid. 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 Policy 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.

Learn more about keyword #1. Stop by Maria Smith’s site where you can find out all about keyword #2 and what it can do for you.

Long Term Care Insurance Policy Premiums are determined by the type of policy chosen, daily benefit amount to be paid, your age, number of years the policy will pay benefits, choice of inflation protection and the number of days after you qualify for the benefits before the company will start to pay benefits. If you have a pre-existing condition some companies will insure you for a higher premium. The combination of these factors decides your LTCI premium.

Various LTCI companies calculate the cost of benefits you choose in a varying manner. This reason alone can make a significant difference between premiums for similar benefits. For instance, a company calculates the premium based on every $10 of the daily benefit you choose. If for each $10 of daily benefit the company charged $95, the premium would be $950 per year for a daily benefit of $100. With a similar package of benefits costing $150 with another company, the premium would rise to $1500.

The type and amount of inflation protection chosen will also influence your LTCI policy premium. The makes the cost nearly double for those in 40s and 50s and not expecting to need care for several years. As you age your ability to change LTCI policy diminishes but probability of developing health conditions which make you ineligible to apply for new benefits increases.

Your LTCI premiums can increase over the years. When you buy a LTCI policy your agent provides you with a personal worksheet which explains in detail among other things, the rate increases the company has had since 1990. In which states and by how much the rates increased is also stated in this sheet. The rate increases for every company that sells LTCI is listed on the California Department of Insurance website. In 2000 California passed legislation, making it difficult for LTC insurance companies to increase future premiums.

When it became mandatory in 2006 for all companies filing for premium increases over a certain amount to offer a choice, policy holders got to choose between stop paying their premium and keep the benefits equal to the total amount of premiums already paid. The sum of premiums that has already been paid will finance only a small amount of care. If you were unable to pay because of a premium increase, you will not lose all your benefits.

By reducing some of the policy benefits you can negotiate with your company for lower premiums. If you have received premium increase notice or you need to lower your premium contact your local Health Insurance Counseling and Advocacy Program (HICAP) office.

Looking to find the best deal on long term care insurance rates, then visit www.olongtermcareinsurance.com to find the best advice on LTCI quotes for you.

Chronic illness and disabilities force people to seek Long Term Care services. Help with daily activities such as eating, bathing, using the bathroom, dressing, moving from bed to chair etc. is termed as long term care. Medicare covers only skilled care and does not pay for help with dailiy activities as it is not skilled care. Help in your own home or in an assisted living centre is not covered by Medicare. Medicaid comes into effect only after all of a person’s assetts, savings and dignity are wiped out.

Long Term Care Insurance pays for costs resulting from long term care. As life expectancy increases so does the need for help with daily activities. Baby boomers by 2030, will reach the age of 65 and 40% of them will live to be 90. 70% of people over the age of 65 will become to depend on help with their daily activities. At anytime accidents and injuries can happen to anybody forcing them to become dependent on these kind of services.

Working adults between the ages of 18 and 64 form 40% of people receiving assistance with their daily activities. Buying long term care insurance at a young age locks in rates that can not be found as you grow older. You can not buy this kind of insurance only at the time you need it or at a time of crisis.

Most times children or family want to help. But very often children have their own young ones to take care of or are unable to quit their jobs and relocate to help their aged parents. Maximum coverage long term care health insurance provides you the financial freedom to choose the kind of care you want and where you want to receive it.

Everyone hopes to leave their life savings to their loved ones and not spend it on hospital and home care bills. You can protect your savings and assests with long term care health insurance and if you recover and over come the need for help with daily activities you will still have your savings to enjoy.

Learn more about Long Term Care Insurance. Stop by Maria Smith’s site where you can find out all about Long Term Care Health Insurance and what it can do for you.