Long-Term Care Insurance – A Simple Explanation
- October 12, 2016
- Posted by: marlenedubois
- Category: Home Health Aide Training
Long-term Care Insurance can be an effective tool for protecting your assets along with also also estate via the high costs of senior care. Though the average nursing home length of stay can be significantly higher than most people believe, 2.4 years according to a report conducted by the National Center for Health Statistics, less than 20% of long-term care can be nursing home care. Home care, home health care, adult day care, assisted living facility care along with also also others constitute the overwhelming majority of senior care services. These services are covered under most Long-Term Care insurance policies.
Generally, the people who are in need of care are responsible for paying the costs. Long Term Care can be usually not covered by your personal health insurance plan or by the policy you may currently have via a present or previous employer. Medicare usually pays for only a modest percentage of skilled nursing costs while Medicaid provides health care coverage to Americans with lower incomes along with also also can pay almost half of all nursing home costs.
that will can be likely that will you will need long-term care within the future however, no one can predict the kind of care that will may be needed or the exact costs involved. With Long-term Care Insurance, you can plan along with also also budget for a known along with also also quantifiable premium for a policy that will can protect you via potentially large out of pocket expenses. that will can be beneficial to learn about the different types of policies available to you in order to match the most appropriate policy to suit your needs.
Types of Long-Term Care Insurance Policies
The most common policy type can be indemnity which pays a maximum fixed benefit. A benefit amount can be chosen at the time the policy can be issued along with also also actual expenses, up to a fixed predetermined dollar amount, are reimbursed as they are incurred.
Integrated policies pool benefits are becoming more common today. The provisions allow for a total dollar amount that will may be used for various long-term care services with expense limits on a daily, weekly or monthly basis. Due to rapidly increasing long-term care costs, most policies offer inflation adjustments to help offset high anticipated future costs.
Long-term Care Insurance policies often take effect when an individual can be unable to perform activities of daily living or becomes cognitively impaired via dementia or related illnesses. Home care services such as physical therapy, skilled along with also also unskilled nursing care along with also also home health aide support provided by licensed agencies are generally covered as are skilled, intermediate along with also also custodial care services provided in licensed nursing facilities. that will should be noted that will if any conditions are preexisting, benefits often denied if care can be needed within six months of the policy’s issue date for that will condition.
What to Consider Before Purchasing a Long-Term Care Insurance Policy
o Verify that will the insurance agent can be licensed to sell long-term care insurance in your state along with also also can be a Long-Term Care Specialist. that will can be to your advantage if he/she has additional education along with also also training in Long-Term Care financing along with also also planning (LTCP, CLTC).
o Review the ratings of the carriers to ensure that will the insurance provider can be financially secure since you will likely need the policy for years to come
o Determine exactly which services are covered, e.g., skilled nursing home care, unskilled nursing facility care, home health care, adult day care, etc.
o Examine the length of time benefits are provided for the various types of services covered, look for maximum lifetime benefit amounts
o Identify the length of time before preexisting conditions are covered
o Find out how long you must wait before benefits begin for services
o Inquire regarding coverage of Alzheimer’s along with also also additional related illnesses
o Review any premium provision waivers
o Analyze cost requirements to ensure your ability to make policy payments during retirement years.