Many individuals today who recognize the need to protect their retirement nest egg against the increased cost of long-term care are choosing to insure the risk. They do this by going through a process of long-term care planning and purchasing long-term care insurance.
Long-term care insurance is private insurance designed to help pay for
nursing home, assisted living and home health care expenses. You pay a premium
to an insurer in return for reimbursement of eligible long-term care services
and expenses.
Most long-term care insurance policies pay benefits when long-term care is prescribed by a physician as medically necessary and when someone can no longer perform two of six activities of daily living for a period of 90 days or longer.
Value of Purchasing Through Your Employer
There are many good reasons to purchase long-term care insurance through your
employer, while you are young and healthy:
- Employees can purchase long-term care insurance through the simplicity of payroll deduction.
- Premium discounts are available for employees and eligible family members.
- Streamlined underwriting is available during the initial enrollment period.
- When you leave employment, coverage is portable.
