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What you need to know about long-term care insurance

Most of us will experience a disability or chronic illness at some point in our lives. This coverage can help.

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Long-term care (LTC) insurance is a type of coverage that helps pay for personal care services in the event you or your spouse are diagnosed with a disability or chronic illness, which many of us will be during our lifetime. In fact, almost 7 in 10 seniors will require long-term care at some point. While policies differ, this insurance can offset the exorbitant costs ofShow More

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What long-term care insurance pays for

If there comes a time you're incapable of taking care of simple, everyday tasks or “activities of daily living” (ADL)—for example, if you are unable to shower, use the bathroom, dress yourself or feed yourself—this coverage will pay for a professional to support you. It may pay for a nurse or aShow More

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Who needs long-term care coverage

While you might think that LTC insurance is for older people, just about anyone—at any time—might find they need it. In fact, approximately 8 percent of adults in their 40s have a physical disability or mental disorder for which they could use these services. What's more, about 4 in 10 adults whoShow More

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The right time to buy a plan

Since premiums are based on current age and health status, LTC insurance is more affordable when you’re younger and in good physical shape (usually in your 40s and 50s). If you wait until you’re 65, the rates may be significantly higher. Also, keep in mind that if you have a preexisting healthShow More

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How much it costs

Like all types of insurance, the cost depends on the policy you choose. Variables that factor into your rate include your age, health, state, marital status (couples tend to receive discounts) and the maximum amount to be reimbursed. The average premium for all policies is about $2,700 a year.

IfShow More

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Why you need a policy

In terms of your physical health, this type of coverage could ensure that you maintain your independence.

Financially speaking, paying for personal care services on a continuous basis can quickly drain your retirement fund. According to recent estimates, a home health care employee can earn as muchShow More

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