Long-term care (LTC) insurance is the assistance or supervision someone may need when they are unable to do some of the basic activities of daily living (ADLs) independently.
Most conditions impacting people with long-term care needs are chronic such as:
- high blood pressure
- Alzheimer’s disease and dementia
- depression
- arthritis
- diabetes
- heart disease
But chronic disease is not exclusively reserved for those in long-term care.
Chronic disease types covered varies by policies, but they often include:
- home health care such as skilled in-home nursing care
- occupational
- speech
- physical and rehabilitation therapy
- help with activities of daily living like bathing and eating
What is the biggest drawback of long-term care insurance?
Long term care insurance can be expensive and premiums can go up.
That’s often a big, unpleasant surprise for many people.
But despite the increasing rates, in the long run, LTC costs can be less than the payout for care once it’s needed.
Is long-term care insurance worth it?
If you’re worried about potentially needing to pay for long-term care, long-term care insurance can be an excellent investment.
Nursing home and assisted living care can be expensive and long-term care coverage can lessen your family’s financial burden and, most importantly, offer you peace of mind.
Take note that some states do not allow certain exclusions.
Furthermore, many long-term care policies exclude coverage for mental and nervous disorders or diseases (except organic brain disorders) and alcoholism and drug addiction.
Why do people want long-term care insurance?
Often, families are busy with their lives, live far distances apart, and find it challenging to care for ailing loved ones as that could be a full-time job in itself.
As such, we step in and help with daily care, bringing much peace of mind to families as they resume their lives.
In addition, LTC insurance helps cover the costs of care.
While home care out-of-pocket costs may be tax deductible, having LTC insurance can relieve the pressures of paying for care out-of-pocket when families may be unprepared to do so unexpectedly.
What is the goal of purchasing a long-term care insurance policy?
If you purchase a long-term care insurance policy, out-of-pocket costs may be unnecessary.
This type of coverage is used to help cover the costs of care received in nursing homes, specialty care facilities, assisted living facilities, hospice care – and home care.
What is not covered under long-term care insurance?
- Intentionally self-inflicted injuries
- Alcoholism and drug addiction
- Care in government nursing facilities unless a charge is made in which you are obligated to pay
- Coverage while the insured is outside the United States and its possessions
What are the three types of long-term care insurance?
- Traditional long-term care insurance
- Hybrid long-term care insurance
- Life insurance with a long-term care rider
Each type of coverage presents different pros and cons worth considering.
Consulting with a LTC agent will be worthwhile for such an important investment.
If you have a qualifying need, it pays benefits.
Traditional LTC policies are available for folks between ages 18 and 79.
Linked-Benefit is typically a combination of life insurance with a long-term care rider.
LTC insurance companies generally recognize six standard ADLs as bathing, dressing, toileting, transferring (getting in and out of bed or chair), eating, and continence for their polices to be effective.
These types of ADLs are the most common factors used by insurance companies to determine eligibility for long-term care insurance benefits.
How old is the typical purchaser of long-term care insurance?
Most buyers are between ages 50 and 69.
After 69 it becomes harder to health qualify for new coverage.
In 2021, the cost of long-term care was between $35,000 and $108,000.
One study found that nursing home care was the most expensive form of long-term care, costing an average of $108,405 annually
LTC insurance is recommended for individuals and families under the age of 65 with $1.5 million to $3 million in investable assets.
The reason for the limitation on net worth and age is because of the cost of coverage, compared to what you receive.
What are qualified long-term care expenses?
Medically necessary long-term care expenses include diagnostic, preventative, therapeutic, curing, treating, mitigating and rehabilitative services.
To highlight, the HIPAA Act also resolved that qualified long-term care expenses include maintenance and personal care services.
Who would most likely benefit from long-term care insurance?
Long-term care insurance is coverage that provides home care, nursing-home care, home-health care, and personal or adult daycare for individuals age 65 or older or with a chronic or disabling condition that needs constant supervision.
Call us today and we’ll be happy to guide you through the home care process, what compassionate caregiving looks like, share more information about LTC insurance, and
anything else we can assist to make your situation lighter and smoother!
Refer a friend who needs a home care provider.
While we are located in Placentia, CA in Orange County, in between Fullerton and Yorba Linda, we serve our broader surrounding cities and counties, so don’t hesitate to call us!