Long-term care insurance, also called nursing homeinsurance, has become an increasingly burning issue over the past decade.Insurance companies promote this type of insurance as an ideal way to savemoney and cover all the individual costs in the long run, but they turn out tobe quite the opposite, considering that they cover only a small percentage ofthe medical expenses one might have, all the while having a considerable amountof limitations in their offers.
The main argument that the insurance companies use to pointout the benefits of having this sort of insurance is that one is likely tospend a lot of years in a nursing facility and the costs of such a stay wouldmost likely force them to pour all their money into such an institution andeventually maybe even end up in the street. This may be appealing to peoplewith fairly large incomes, who could use this type of insurance as a safety net,rather than a necessity. However, regular middle-class people should thinkabout this from a different perspective. The actual possibilities of staying in a nursing home for very long is really slim and the protection offered by Medicaidlaws does not leave the option for one to stay without a place to live, therefore these expensesturn out to be quite the opposite of an investment.
As a matter of fact, only 10 percent of people stay in a nursingfacility for three years, while it is most likely that they stay will be aboutsix months long.
Nevertheless, long-term care insurance is advertised in a verybeneficial way, but while there may a big talk, it does not exactly deliver.Even if we ignore the fact that only a small amount of people stays in anursing facility for a long time, the fact shouldn’t ignore that the promises ofinsurance companies are not exactly kept. The majority of people who boughtlong-term care insurance were eventually obliged to cover the expenses of theirstay in a residential facility with their own money, since they either weren’tpaid once they entered a facility, or the money they received didn’t actuallycover the cost of their care.
Although long-term care insurance is generally considered abad investment, due to negative media coverage, the insurance companies were putunder pressure to revise and clarify their offers, so that people would have greaterbenefits, as well as a more specific idea of what they are getting. The mainconclusion is that this is not an ideal solution, but it is not to be thrown awaylightly as well, since it might be indeed benefit some people. The most importantthing is that for one it would not be the base of his or her opinion on the majority of claims, but to considerit for their individual situation.