Nursing Home Insurance

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Nursing Home Insurance
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Submitted by hareyan on Aug 12th, 2005
Posted under:Affordable Health Insurance

Health Insurance and Nursing Home

Do companies offer nursing home insurance? Is that offered in a long-term care policy? What is usually covered in long term care policies?

"Nursing home insurance" is really just another name for long term care insurance (LTCI). However, nursing home insurance is an inaccurate term, because LTCI typically covers much more than just nursing home care. Long term care insurance (LTCI) is a relatively new insurance product, so many consumers don't understand exactly what it covers.

Many health insurance companies today offer long term care insurance products. Coverage for nursing home care is an important aspect of a complete long term care policy, but it is not the only reason for purchasing LTCI. Most long-term care is provided outside the nursing home setting, so it is important to choose a policy that will cover the types of care you are most likely to need. Home health care, respite care, adult day care, assisted-living care, and many other types of care may be covered under a comprehensive long term care insurance policy.

When you purchase a long term care insurance policy, you are typically asked to choose the amount of coverage you want. Most policies provide a certain dollar amount for each day of care (called a "per diem benefit"), which can range from as little as $40 per day to $300 per day or more. Some newer long term care insurance policies offer "pooled benefits" rather than per diem benefits, which means that the policy provides a total dollar amount that may be used for different types of long-term care services. Pooled benefit policies usually include a daily, weekly, or monthly limit on covered expenses. You will also need to choose a benefit period, which is the maximum length of time that benefits will be paid. Some policies have different benefit periods for different types of care. For example, a policy might offer five years of nursing home coverage and two years of assisted living coverage. As you would probably expect, long term care insurance premiums are higher for policies with larger benefit amounts and longer benefit periods.
Source: Insurance.com