Long-term care coverage is a safety net for many individuals. It is an option that is there to cover any type of unexpected long-term care needs. These needs can come from an accident, a serious injury or illness such as cancer. Though for some people the long-term care coverage may be a safety net, for others it is a real necessity. Planning for long-term care coverage is one thing, but planning for long-term care coverage increases is another. The long-term care coverage amounts are increasing yearly and this can cause several issues for individuals on a tight budget or may not be able to afford the increases at a later date. The following are some ways an individual can plan for long-term care coverage increases in the future.
Health Savings Accounts
Health savings accounts are one of the leading ways for individuals to plan for long-term care coverage increases. The benefit of setting up a health savings is any money not used from account will roll over from year to year with no penalty. You can withdraw from the health savings account at any time or you can use the health savings account to pay for long-term care coverage or other unexpected coverage increases. This means, that if you choose a long-term care policy for $200 a day of coverage and the increases make that daily coverage increased to $250 you can use your health savings account to cover the additional $50 a day that the long-term care insurance coverage policy may not cover.
Increased Major Medical
Increased major medical is another way for individuals to cover the high cost and increase cost of long-term care. If you currently have a major medical plan, you may want to consider discussing an increased major medical plan that will cover long-term care in the event that this occurs. On a major medical plan, a long-term care coverage may be able to cover much more than a standalone long-term care policy would be able to handle. Also, keep in mind that your major medical or increased major medical coverage is primary. This means that your increased major medical coverage would be billed first and your long-term care insurance would be billed second or after any gap insurance that you have. This will increase the value of your long-term care policy and allow you to cover everything completely without an additional out-of-pocket expense.
Additional Gap Policies
Additional gap policies are another way of paying for the increased cost of long-term care insurance. You can opt for gap policies from other insurance companies, supplemental policies or other insurance policies that will help cover any type of increased costs. The combination of major medical coverage, long-term care insurance, health savings plans and gap policies should be able to combine together to cover the variety of increases that may occur in long-term care plans.
In order to determine your best options, schedule a meeting with your insurance representative to discuss what type of plan would work best to cover everything and to ensure that you have as little additional out-of-pocket expense as possible.