Long term care insurance refers to coverage for those ages 65 and above that includes home-health care, nursing home care and adult day care. The insurance covers people suffering from disabling or chronic diseases that require constant supervision.

In general, long-term care can be very expensive and as such individuals opt to avail of long-term insurance.

Costs of long term insurance

Getting a long-term insurance may come off a lot cheaper than paying for health care for the elderly.

For example, a nursing home may provide skilled care for around $150 to $300 per day which in turn can cost around $80,000 annually. Likewise, custodial home care where the caregiver will stay at the house may likely to cost around $9,000 per year.

Long term insurance works by reimbursing the policyholders for the daily amount) subjected to a limit) for services that provide for daily care assistance like eating, bathing or dressing.

The cost of a long-term insurance varies on a number of things. In computing for the cost of long-term insurance, an individual will have the following to consider:

• The current age at the time of purchase of the insurance
• The maximum amount or limit that the insurance will cover for each day of assistance
• The maximum years that the insurance will cover
• Optional benefits for inclusion in the policy that are likely to increase with inflation

But not all may qualify for long-term insurance since insurance companies may reject applicants for a variety of reasons.

A person who is already suffering from very poor health may be rejected by insurance companies. Likewise, those who are already availing of long-term care services since most personal insurances require underwriting.

Some insurance companies may allow those who are already in poor health or receiving care treatments to purchase a limited-type of coverage.