Understanding How Long Term Care Insurance Companies Came to Be
The first long term care insurance companies began offering policies over 30 years ago. At a time when modern families were increasingly spreading out further away, the option to care for an elderly parent was less available. This new insurance product was developed in an attempt to anticipate the needs of a rapidly aging population.
There is a definite need for long term care insurance in the U.S. Here are some reasons why:
- Most families now have fewer kids
- Single parents raise their children alone
- Some people never marry or have children
- Those earning an income cannot afford not to work
All of the above and other societal changes have impacted who will be available to care for elderly or incapacitated family members.
Plus, many senior citizens (and often, their children too) have a strong aversion to nursing homes and simply refuse to go. When Social Security and Medicare won’t cover all their care needs, long term care insurance companies can help fill the gaps. A sound policy will allow seniors more freedom over where they live and how long they can stay out of a nursing home.
Of course, ultimately the need for a long term care policy comes down to one’s individual family situation. If you will at some point become unable to fully take care of yourself and there is no one to care for you, you may very well need long term care insurance.
What Long Term Care Insurance Companies Today can Offer
The early long term care insurance policies were primarily nursing-home care only policies designed to take over when Medicare dollars ran dry. They were not the comprehensive benefit plans we see today. These days, the plans come in two basic types:
- Reimbursement of expenses paid
- Payments if an event or circumstances are present
In the first, the policyholder has to pay out for their expenses and submit to be reimbursed. In the second type, the policy pays directly if the insured person becomes incapable of performing specified activities necessary for daily living. There are a number of qualified long term care insurance companies from which to choose a policy that’s best suited for you. A qualified Mississippi insurance agent can help you assess the risk and get a policy that works for you or your parents.
Call The Nowell Agency Inc. at 601.992.4444 for more information about long term care insurance companies, or request a quote online.