Most seniors will inevitably need extra help with the activities of daily living at some point. Home care is one of many viable solutions, and older adults welcome an opportunity to age in place. Seniors and their families must pay for this service, and long-term care insurance can be useful.
Long-term care insurance should be an important part of every aging person’s financial planning. The mid-50s to mid-60s is an ideal age range to purchase this type of insurance. Most insurers do not approve applicants over the age of 75; and, waiting to buy it when care is necessary is impractical.
What is long-term care insurance?
A long-term care insurance policy is an asset, especially as seniors reach their 50s and beyond. This type of insurance covers long-term care, such as when an older individual develops a chronic illness, disability, or cognitive impairment, including Alzheimer’s disease and other forms of dementia.
Seniors can receive care in a wide variety of places, and long-term care insurance reimburses the policyholder. Examples of places older people frequently receive care include at home, in a nursing home, in an adult day center, and in an assisted living facility.
Plus, long-term care insurance provides coverage where traditional health insurance does not. Specifically, long-term care insurance is intended to cover long-term care services and supports, like personal care and custodial care—whereas regular health insurance does not cover these services.
Medicare is also an impractical financial option for long-term care services since it covers only short-term home health care when skilled nursing care is necessary. Similarly, Medicare does not pay for custodial care at home when seniors need supervision and help with daily activities.
What does long-term care insurance cover?
The activities of daily living that long-term care insurance covers include hygiene tasks, such as bathing, dressing, and toileting. When a senior is incontinent, support is covered. Additional covered services include assistance with eating and transferring, such as to or from a bed or chair.
Specialized care at home is also covered by long-term care insurance. It covers hospice care at the last stage of life and respite care for family caregivers. Payment for memory care services for seniors diagnosed with Alzheimer’s disease or dementia is also reimbursed.
How do seniors qualify for long-term care insurance?
As mentioned, it’s impractical for seniors to apply for a long-term care insurance plan when they need care. This is because applicants will not qualify if they suffer from a debilitating health condition. Older adults who already receive long-term care services also do not qualify due to medical underwriting.
Although most individual policies require medical underwriting, in some cases aging adults can buy a limited amount of coverage. Alternately, in these cases, coverage can be purchased at a higher, albeit non-standard, rate. Be aware that some group policies do not require underwriting.
Most long-term care policyholders are eligible for benefits when they are no longer able to independently perform two out of the six activities of daily living or they suffer from cognitive impairment, like dementia. The policy caps the daily and lifetime amounts paid out.
Once aging adults qualify for long-term care insurance, their policies may impose limits on the amount or length of payment. Coverage length varies, with some policies paying for the cost of long-term care for up to five years, while others pay for it as long as the senior lives.
What determines the cost of long-term care insurance?
A senior’s age and health condition are primary considerations that determine the cost of long-term care insurance. Higher prices correlate with deteriorating health and advancing age. Women also tend to live longer than men, causing their rates to be higher.
Aging policyholders are at liberty to choose the amount of coverage they need. Greater coverage comes with higher rates. For example, opting for higher limits on the daily or lifetime coverage, briefer elimination periods, or fewer restrictions, on the types of covered care impact the cost.
How do seniors buy long-term care insurance?
Older adults can buy a long-term care insurance policy through an agent or an insurance company. When researching companies, it’s advisable to obtain quotes from multiple insurers to compare prices. Insurance rates vary significantly among insurers. Premiums can hike, so look into their rate history.
Before the long-term care benefits begin, an elimination period of 30, 60, or 90 days must pass. During this time, the insured must pay for care services out-of-pocket. Reimbursements for care are received after the senior becomes eligible for benefits.
Secure Your Future: Take Action with Long-Term Care Insurance
Purchasing long-term care insurance can be financially beneficial when plans for home care services are in a senior’s future. A reputable home care agency, like Assisting Hands Home Care, works with numerous major long-term care insurers to give your aging loved one a high quality of life.
Our in-home care services are designed to help older adults age comfortably in place. Professional caregivers fulfill the daily non-medical care needs of seniors. Included in our personal care services are support with the activities of daily living as well as invaluable companionship.
Typical responsibilities our dedicated caregivers undertake are helping with hygiene tasks, meal preparation, grocery shopping, medication reminders, and light housekeeping. We provide transportation to destinations in the community, such as doctors’ offices, senior exercise classes, and senior centers; caregivers support care recipients during the outing.
Assisting Hands Home Care services are provided by qualified caregivers. Each of our professionals is licensed, bonded, and insured to give families and their aging loved ones maximum peace of mind. Caregivers are trained in CPR and First Aid and know how to respond to emergencies.
Home care is an invaluable form of elder care that can be paid for with long-term care insurance. When the senior in your life is ready for quality home care, choose Assisting Hands Home Care in Palos Heights, Illinois, and the surrounding areas.
Schedule a free in-home consult at (773) 207-3767 and learn about senior home care.