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What Is Long-Term Care Insurance?

Whether a business owner purchases it to offer a valuable employee benefit, or an individual uses it to protect an elderly parent, long-term care insurance is coverage designed to help pay for long-term medical and non-medical services that would otherwise be paid out-of-pocket. In 2007, 8 million Americans were protected with long-term care insurance, with $3.5 billion in long-term care claims paid, according to the American Association for Long-Term Care Insurance(AALTCI).

While some NH long-term care insurance plans cover nursing home care, other plans provide coverage for an entire range of services including care in an adult day care center, assisted living, medical equipment, and formal or informal in-home care. Long-term care insurance plans pay benefits to you and anyone else you designate, whether it be a spouse, parent, or child. Depending on the policy, it will either pay a fixed amount or reimburse you for services provided.

Do I Need NH Long-Term Care Insurance?  

new hampshire long-term care insuranceSimilar to New Hampshire homeowners insurance, health insurance and auto insurance, long-term care insurance helps protect you, your loved ones, and your assets. When an elderly person falls ill and lacks insurance, the burden to pay for medical care often falls on family members – and that cost can be substantial.

Considering the emotional struggles that result when a loved one requires long-term care, the last thing you’ll want to think about is a steep financial burden as well, and NH long-term care insurance plans help you avoid this added stress.

How Does Long-Term Care Insurance Differ From Disability Insurance and Health Insurance?

Major medical insurance and disability insurance do not protect you and your family in the same way that long-term care insurance does. In fact, health insurance plans typically cover only 30 days of recuperative time, whereas long-term care insurance plans often cover two years or more.

Although disability insurance replaces your salary in the event of an injury, it fails to cover ongoing medical care. Even more restrictive is Medicare, reimbursing you on average only 28 days, with a maximum of 100 days.

How Much Does Long-Term Care Insurance Cost?

Premiums vary, depending on your age and health conditions when you purchase the policy, as well as the amount of coverage you desire. Although the cost of care in nursing homes and assisted living facilities varies from state to state, the average yearly cost of a nursing home in 2010 reached $80,850, according to Long Term Care Insurance Tree.

This represents a significant expense for many families, so it’s best to be prepared. Purchasing NH long-term care insurance at a younger age is a smart idea, considering that you are likely to be healthier and receive a lower premium. However, the AALTCI reported that only 33 percent of all Americans who apply for long-term care insurance apply at the age of 55 or younger.

Coping with a parent, spouse, or child’s illness is never easy, but New Hampshire long-term care insurance can help protect you and your family. For more information on NH long-term care insurance plans and additional types of coverage, please subscribe to our blog or contact us.

To request a free NH long-term care insurance quote, please fill out and submit our Online Insurance Quote Request Form.

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