Is Virginia Long-Term Care Insurance Right for Me?

Virginia long-term care insurance often forms part of your estate plan. In this article we cover a few things you should understand about this insurance option.

What is Virginia Long-Term Care Insurance?

Long-term care insurance covers the costs of services not covered by traditional health insurance, Medicare, and Medicaid. Virginia long-term care insurance has the potential to provide you with extra protection from the high costs of long-term care.

In the event that you endure a long stay in a nursing home, the cost of that stay could be substantial. This could force you to deplete your financial resources in order to meet the heavy costs of long-term care.

This kind of situation is exactly what long-term care insurance is designed to prevent. The primary purpose of long-term care insurance is to help preserve your financial assets in the event you or your spouse requires expensive long-term care.

Ultimately, if you can afford the high monthly premiums of long-term care insurance, then it can be a useful tool to help you protect financial assets. However, purchasing a long-term care insurance policy is not without its risks. Here are five things you should know to help decide if long-term care insurance is right for you.

1. Long-Term Care Insurance May Not Provide the Coverage You Expect

Generally, Virginia long-term care insurance policies cover the costs of at home care, nursing homes, hospice care, and Alzheimer facilities. Furthermore, long-term care insurance will help supplement the costs of adult day care and assisted living.

However, long-term care insurance will not cover the full cost of these facilities. The policy will likely only help supplement the costs. Additionally, long-term care insurance usually will only help cover these costs for around three years.

2. You won’t see any Benefits from Your Policy until the End of Your Life

It cannot be understated that Virginia long-term care insurance is a long-term investment. You will not see any benefits from your policy until the end of your life. For instance, over half of all long-term care insurance policy claims are not made until insurers are in their eighties.

Additionally, in order to secure a good policy you are going to have purchase one before you turn 60. Therefore, is important to remember that you likely will not see any significant benefit from this policy for several years.

3. Long-Term Care Insurance is Expensive

Purchasing a Virginia long-term care insurance policy is an expensive financial commitment. Much like any other insurance policies, you pay a monthly premium on a continuing basis. According to the American Association for Long-Term Care Insurance, the average annual cost of long term-care insurance for a couple age 55 is $2,466-per-year. This means you would pay a monthly premium of over $200 every month.

Furthermore, in order to secure a satisfactory rate for long-term care insurance you would have to purchase the policy well before you turn 60. Since you likely won’t cash in on this policy until much later in your life, you may be stuck paying high monthly premiums for several years without any immediate benefit.

4. You May Never Collect Much from Your Policy

When you purchase Virginia long-term care insurance, there is a good chance you may never use it enough to justify the cost of your high monthly premiums. Most individuals will not need long-term intensive care. Additionally, just like any other insurance policy, if you do not use your deductible then your premiums will not be returned to you.

So in order to truly benefit from you long-term care insurance, you would have to endure the high costs of a lengthy stay in a nursing home. This situation is unlikely, but if you do require intensive care when you get older then your policy will allow you to avoid depleting your own financial resources. Thus, purchasing a long-term care insurance policy is a gamble that may not pay off.

5. Long-Term Care Insurance is not Your Only Option

In the event that you or your spouse require an expensive and lengthy stay in a nursing home, Virginia long-term care insurance will help you protect your financial assets. However, it is not your only option.

Once you deplete your own financial resources, Virginia’s Medicaid program should cover the cost of your long-term care. Medicaid traditionally covers many of the same things that long term-care insurance already would pay for. So if you have significant financial resources, then Long-term care insurance may be worth the investment to allow you to protect your assets.

Conclusion

The decision of whether or not to purchase Virginia long-term care insurance policy is a difficult choice. If you have significant financial assets then purchasing long-term care insurance could be a worthwhile investment. However, it’s important to remember that you may not benefit from your policy enough to justify the high monthly premiums.

This makes purchasing a long-term care insurance policy a gamble.

Finally, government assistance may cover many of the costs associated with long-term care insurance. Before making the decision to purchase a long-term care insurance policy, you should discuss it with an experienced and competent elder law attorney. Ultimately, having an experienced attorney by your side can best protect your long-term needs.

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