One type of insurance policy that a lot of people don't consider, is long term care insurance.
This article discusses this critical policy, how it works, and why it is so important to get.
Long term care insurance provides coverage for all costs associated with assisted living expenses.
While senior citizens are the most likely demographic to invest in this type of coverage, it's important for anyone to have it, regardless of age.
If you are injured in an accident, have a stroke that leaves you limited physically, or end up needing assistance to perform the daily tasks of life for any reason, a good long term care policy will help you afford the costs.
This type of care is very expensive.
Being able to afford the costs of it is not something most people are able to do.
When you choose the coverage limits of the policy you purchase, your premiums will vary accordingly.
Make sure to do some research ahead of time and figure out what the cost of care is in your area.
Choose limits that cover you for the minimum of two years.
You can choose to institute an insurance rider into your long term care policy, to take care of inflation rates.
Your coverage limits will extend over time so that you receive a higher amount of money down the road, to offset inflation.
Of course, choosing this rider will raise your rates.
Lastly, there is a form of deductible associated with this type of coverage.
Instead of paying out of pocket every month, the deductible comes in the form of a waiting period.
You will have to come out of pocket for 100% of the cost of care for a pre-determined amount of months that you choose.
The longer the time frame, the lower your premiums will be.