A person might not be able to take care of oneself because of old age, mental/physical disability, or injury. When a person cannot perform the basic activities of life, such as eating, bathing, dressing up, or transferring, he/she will need assistance. While this kind of care service might be expensive, Long Term Care Insurance is designed to pay for such services, up to the policy limit.

Generally speaking, if the insured cannot perform activities of living, has cognitive impairment or with doctor’s certification, he/she will be eligible to receiving the benefits after the waiting period (in which no benefits will be paid). The benefit is either on reimbursement basis (reimburse the insured’s actual expense, up to the policy limit) or indemnity basis (insured will receive the maximum per day benefit). In either case, it will lessen your care service burden.

The length of the policy is flexible, it can go from 2 years to lifetime. It is never too early to buy long term care insurance, because if you are over 50, there is a chance of being rejected from getting this insurance.

Do not underestimate the care service cost. Make long term care insurance part of your retirement planning, because it is a good way to protect your personal assets, and provide financial security. Remember, your medical insurance do not cover this care service expense!