What does Long-Term Care Insurance cover?
Long-Term Care Insurance is insurance that helps pay for care in a long-term care facility. LTC insurance usually covers home care and assisted living costs. Some policies help cover nursing home care and even hospice care.
Long-Term Care Insurance provides benefits when you are unable to perform activities of daily living (ADLs) such as bathing, dressing, preparing meals, toileting and transferring from bed to chair. It also helps pay for a companion to assist with ADLs and other personal care needs if you cannot do so yourself. Long-Term Care Insurance may pay for short term rehabilitation services or hospice care at home if needed.
When should you consider Long-Term Care Insurance?
We understand that long-term care insurance can be confusing and intimidating. We get it: you need to know that the coverage you choose is going to protect you and your family in the event of a long-term disability or illness.
But how do you know when it’s time to consider buying long-term care insurance? When should you start thinking about it? And how do you go about choosing the right company for your needs?
There are a few key factors to keep in mind when considering long-term care insurance:
Age – The older you are, the more expensive it will be to buy coverage. This is because younger people have fewer medical issues and therefore less risk for an insurance company. If you’re planning on retiring within a few years, it might make sense to wait until then before purchasing coverage.
Health Status – In order to qualify for coverage with most companies, applicants must be relatively healthy (or at least not too sick). If you have any chronic conditions or disabilities that require ongoing treatment or medication, there’s no way around this requirement—you’ll need to wait until those conditions are under control before applying for coverage.
What types of Long-Term Care Insurance options are there?
There are three types of long-term care insurance.
Traditional (i.e., stand-alone) policies: These policies are purchased individually, without the help of others such as an employer or government program. They usually have a high monthly premium, but offer more flexibility when it comes to choosing benefits and length of coverage.
Hybrid policies: These policies are designed for individuals who may need nursing home care or assisted living, but also want to be able to stay in their homes and communities for as long as possible. This means that the coverage is bundled with other types of insurance like life insurance and disability income insurance.
Policies as part of a Continuing Care Retirement Community package: These policies are offered by CCRCs and provide long-term care coverage along with other benefits such as meals and housing assistance if you need it later on down the road.