Long-term care insurance helps the policyowner pay for the costs associated with long-term care support and services. Long-term care insurance generally covers care not covered by health insurance, Medicare, or Medicaid. Long-term care insurance benefits are typically triggered by a loss of two or more activities of daily living (ADLs) such as dressing, bathing, eating, toileting, continence, transferring (getting in and out of a bed or chair), and walking. People who file a claim for long-term care insurance benefits must verify medical eligibility and, once approved, typically wait 90 days (the elimination period) before benefits begin.
There are a variety of policy options that can cover home care, assisted living, adult day care, respite care, hospice care, nursing homes, and memory care facilities. Long-Term Care insurance policies can be purchased on an individual basis as either an LTC-specific policy or a hybrid life and LTC policy. A hybrid policy provides death benefit protection for the owner, but once a need for long-term care arises, it converts to provide that coverage. If LTC coverage is never needed, the policy can be surrendered for its cash value or kept in force to pay a death benefit.
As is always the case with purchasing insurance, the younger and healthier a person is when they buy the policy, the better their options and the more affordable their premiums will be.
Another option to cover long-term care needs is liquidating an unneeded or unwanted life insurance policy through an LTC-Life Settlement, which will cover any form of care a person wants.
It is always best to work with information and experts to help you navigate these tricky issues. Visit Retirement Genius today to learn more about how to Retire Like a Genius!
