Insurance is a way of life. We insure everything: cars, homes and our health. It is no surprise that with an aging generation of baby boomers that end of life care is an important topic of discussion. Insurance companies offer end of life insurance, providing financial aid for costs associated with end of life care. End of life insurance can help save thousands of dollars and should be considered by every family.
Function
End of life care costs a lot. It includes housing needs, medical supplies and equipment, and caregiver costs. With the security of health insurance and Medicare, few elderly Americans consider what end of life care costs can mean for themselves and their loved ones. Many do not realize until it is too late that both insurance and Medicare put tough rules on end of life spending and often do not cover all associated costs. End of life insurance seeks to assist with these rising costs.
Significance
End of life insurance falls under the definitions of long-term care insurance or life care insurance. Paying premiums provides protection for the large costs that can be expected during end of life care. This insurance can be provided through individual policies, employer benefits including government benefit plans, and some life insurance policies. End of life insurance can mean the difference between five hours of home care a day versus eight, or a three-occupant room in a nursing home versus a private room.
Housing
One example of end of life costs concerns housing needs. Housing is an issue for any aging person. Normal daily tasks of housekeeping, lawn care and meal preparation can become increasingly difficult for an elderly person. When individuals need help with care of the home and personal daily care, the costs for housing needs become more substantial. These needs may include the use of home health aides, assisted living and nursing homes. A 2008 MetLife survey found that yearly rates average from $26,000 for part-time home health aide services to $69,715 for a semi-private nursing home room. According to the National Association of Insurance Commissioners, Medicare does not cover either nursing home care or personal care provided by home health aides. End of life insurance offsets some of these costs.
Benefits
Those who benefit most from end of life insurance are those who need extra care during their final years. A Dartmouth Atlas study noted "The quality of medical intervention is often more a matter of the quality of caring than the quality of curing, and never more so than when life nears its end." Unfortunately, health insurance and Medicare aid only with medical care, not the daily needs for the end of life. Medicare states that end of life insurance helps give people more control and choices regardign long-term care coverage. You are able to choose services and customize your care based upon financial and social needs. End of life insurance is prudent for protecting assets, ensuring optimal care and protecting the loved ones who may provide financial support near the end of life.
The Future
As with many types of personal insurance, physical exams may be required, and individuals are subject to preexisting medical condition clauses. With advances in medicine and care options, there are sure to be changes in end of life care. But no matter how much health insurance and Medicare offer, end of life insurance allows for a person to be able to finance the care they seek during the time when they need care the most.
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