Elderly people require Long term care when they need someone to care for them because they are no longer able carry out a number of every day normal activities unaided. These activities require assistance with day to day personal actions such as bathing, putting on clothes or toileting and can occur at home, in residential or nursing care.
Quite often a stroke or heart attack happens out of the blue, resulting in the need for immediate long term care. Other symptoms such as Alzheimer's disease can develop more slowly requiring increasing levels of care.
How does a long term care insurance policy work? Basically this is a lump sum insurance plan that guarantees a regular payment to help pay for life time care. The purchase price is progressively cheaper relative to adverse health and older age unlike life insurance which is progressively less costly due to younger age and better health.
When a person dies, the income stops and the care plan purchase price is non refundable unless there is some form of capital protection against early demise.
Long term care insurance plan premiums are calculated based on the individual's life expectancy. this is forecast by reference to medical information provided by the person's family doctor. Also insurance companies endeavour to speak to care home staff for an up to date hands on assessment. The cost of a care plan is less relative to correspondingly deteriorating health and frailty.
The amount of long term care insurance payments required is determined by the monthly cost of care less the person's state pension, benefits and other income such as private pensions. The balance required to meet the care fees bill is the shortfall. It is this regular shortfall that can be paid for life by payment of a once only lump sum to an insurance company. It is possible to pay extra to make sure that the benefits increase each year in line with rising care costs.
If a care provider will agree to keep their annual care fee increases to say five percent each year, the long term care insurance plan can be structured to match this rate for the rest of the persons life.
Even a guaranteed care plan cannot take into account increased care costs if there is a need the need to move care homes. This may be due to a requirement for nursing care or if the present care home closes for some reason or is taken over by a larger group. A regular NHS contribution is made for persons assessed as needing registered nursing care. However if the person's health has deteriorated to such an extent that they qualify for continuing care, this is fully funded by the NHS.
One main advantage of this type of scheme over others is the tax efficiency. This is due to the fact that the benefits are paid direct to the care provider so has no impact upon the person receiving the care. - 31884
Quite often a stroke or heart attack happens out of the blue, resulting in the need for immediate long term care. Other symptoms such as Alzheimer's disease can develop more slowly requiring increasing levels of care.
How does a long term care insurance policy work? Basically this is a lump sum insurance plan that guarantees a regular payment to help pay for life time care. The purchase price is progressively cheaper relative to adverse health and older age unlike life insurance which is progressively less costly due to younger age and better health.
When a person dies, the income stops and the care plan purchase price is non refundable unless there is some form of capital protection against early demise.
Long term care insurance plan premiums are calculated based on the individual's life expectancy. this is forecast by reference to medical information provided by the person's family doctor. Also insurance companies endeavour to speak to care home staff for an up to date hands on assessment. The cost of a care plan is less relative to correspondingly deteriorating health and frailty.
The amount of long term care insurance payments required is determined by the monthly cost of care less the person's state pension, benefits and other income such as private pensions. The balance required to meet the care fees bill is the shortfall. It is this regular shortfall that can be paid for life by payment of a once only lump sum to an insurance company. It is possible to pay extra to make sure that the benefits increase each year in line with rising care costs.
If a care provider will agree to keep their annual care fee increases to say five percent each year, the long term care insurance plan can be structured to match this rate for the rest of the persons life.
Even a guaranteed care plan cannot take into account increased care costs if there is a need the need to move care homes. This may be due to a requirement for nursing care or if the present care home closes for some reason or is taken over by a larger group. A regular NHS contribution is made for persons assessed as needing registered nursing care. However if the person's health has deteriorated to such an extent that they qualify for continuing care, this is fully funded by the NHS.
One main advantage of this type of scheme over others is the tax efficiency. This is due to the fact that the benefits are paid direct to the care provider so has no impact upon the person receiving the care. - 31884
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before to start providing for long term care fees make certain to access Barbara Davies's vital free report about long term care insurance policies.
