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Long Term Care

A Guide to Long Term Care Coverage

This kind of coverage is engineered to provide assistance for you when you are longer able to take care of yourself, especially in your later years. In modern times people now survive longer lives. This means that those who are older or sick (or both) will require assistance in their latter years. This kind of assistance, whether it be in-home care or via an assisted-living facility, can be quite costly and also add up fast and become overwhelming to most people. Long-term care insurance is available to help lessen or even eliminate these costs.

Who Benefits

This level of coverage, it is important to note, is not available with regular health insurance coverage. Seniors who can’t perform daily living activities as a result of illness, cognitive problems like Alzheimer’s disease or those who have prolonged disability issues are all candidates for long term care coverage. Good long-term insurance, often tailored for older folks, is also available for those who find themselves unable to take care of themselves due to other reasons. Policies vary, but there is a long-term care solution for all who require support , whether it be in the form of stay-in or assisted living help, nursing facilities or even visits to the home for service.
One can obtain this kind of coverage as part of a standalone policy or as a policy add-on (or “rider”) for an existing life insurance policy. Also, this coverage is also often made available as part of an employee benefits package often times.

How it Works

This kind of coverage can compensate for a myriad of long term care costs should one be saddled with a chronic illness or if disabled in some way. Again, this can include care in a nursing home, assisted living or even in the patient’s own home.
Having long term insurance depends on your inability to carry out the Activities of Daily Living (ADL). The aspects of this would include bathing, eating, and dressing, being mobile on your own and using the bathroom. Being unable to do one or more these things qualifies you for coverage.

Types of Coverage

Insurance companies will pay between half and all of the costs for extended care. Below are a few of other policy aspects that should be considered when obtaining this kind of care insurance:

The Benefit Period– The policyholder can opt for how long care should be provided when the coverage is first bought. Options include anywhere from a 2 to 10-year period.
Elimination Period– Most policies will not pay out until the first month of coverage is completed. Periods offered are usually 30-, 60-, 90-, or 180-days of waiting.
Automatic Inflation Protection- The earlier one purchases such a policy, the longer it can accrue interest, which can also mean larger pay-outs.
Shared Couple Benefit– One can choose the benefit that allows a spouse to utilize the other spouse’s benefits.
Workplace benefits- Long term care is often part an employer package.