When people cannot perform their daily activities owing to some chronic illness, disability (more info on disability insurance here, old age or injury, they are entitled to long-term care (LTC). This type of care, which is popular in the US and other western countries, may have to be provided to the person for a long time either at home, a daycare facility or a rehabilitation center. However, this often proves to be an expensive affair. This has prompted many people to go for a long-term care insurance cover these days.

Why go for an LTC insurance cover?

The objective of LTC is to provide financial safety to a person who cannot take care of him/herself owing to certain circumstances. Many buy this type of policy to remain independent when they grow older and do not become a burden on their family. Moreover, these policies are renewable. This is advantageous because there is no such thing as cancellation of the policy provided the premium is paid on time.

What is included or excluded in the cover?

Those who go for this cover should know that the policy is offered to individuals when they can not carry out at least two or more activities that are required for their daily living. These may include simple activities such as dressing, eating, bathing etc. As per the terms and conditions, every type of care is included in the plan with the exception of specific omissions. This may include certain mental and nervous disorders. At the same time, alcoholism, drug abuse and other self-inflicted injuries are also excluded as part of the cover.

How to opt for a good LTC cover?

A good insurance policy can be a sensible investment that provides you the financial support and security when you need them. However, there are a lot of intricacies involved in LTC insurance policies when compared to other insurance policies that are available in the market. Therefore, before you take a final call on buying any policy cover, keep certain things in mind.

- Do an extensive research on the internet on the various companies offering LTC insurance covers and ask for quotes from reputed companies that are rated high by the insurance rating agencies in the state.

- Ask your insurer questions such as what would be the amount of cover, the terms of the policy, when can the policyholder start getting the benefits and what would be the rate of the insurance premium, among others.

- Compare policies based on the benefits they offer and get the list of benefits from the insurance company. Also find out about its duration. Generally, a good policy has a 5-6 years term comparison.

- Work out on a premium adjustment on an annual basis that suits your budget. The premiums for this policy are usually adjusted on existing market conditions, although you can expect 20-30% rise in the future premium rates.

In case of LTC cover, premiums remain more or less the same every year. As LTC premiums are based on age, it becomes less expensive when the insurance holder purchases the cover at an early age, just when he hits his 50s.