Long-Term Care Insurance brings up many questions like...
What is Long-Term Care Insurance (LTCI)?
How much does it cost?
What disqualifies Long-Term Care Insurance?
The short answer of long-term care insurance's worth is, yes! It is extremely worth it if you can find a policy that works well for what you may need. However, there are lots of details and considerations that go into deciding on long-term care insurance policies.
What is Long-Term Care?
Long-term care is a range of services and support aimed at providing assistance to those who can no longer perform at least 2 basic activities of daily living (ADLs include activities related to personal care, ambulation, eating, and continence). These services may include home health care, residential facilities, respite care, and hospice care.
According to the ASPE, 70% of people over 65 years old will develop a severe need for long-term care in their family. While 48% of people turning 65 will need long-term care for themself.
Women tend to need a longer duration of long-term care than men need (3.7 years versus 2.2 years, respectively).
The Genworth Cost of Care Survey 2023 shows the median cost of long-term care services in the state of Tennessee which range from $70,928 annually for homemaker services to $111,325 annually for a private room in a nursing home facility. Because most health insurances and Medicare do not usually pay for long-term care services, these expenses take a toll on solo-agers, spouses, and families of those in need of long-term care. That's where Long-Term Care Insurance can assist.
What is Long-Term Care Insurance (LTCI)? And Is it Worth it?
Long-Term Care Insurance's purpose is to cover long-term care services needed as you age. The difference between LTCI and health insurance is that health insurances is focused on medical care, such as treating illness or injury, while LTCI focuses on non-medical care.
It is important to know whether you need LTCI as policies can be expensive. Also, it is important not to delay purchasing as it can be too late to purchase policies at a certain point.
LTCI may be denied, if you...
already receive long-term care
need help with ADLs currently
have certain medical conditions or diseases
Alzheimer's, another form of dementia, or cognitive impairment
AIDS or AIDS-related complex
Multiple Sclerosis or Parkinson's Disease
suffered a stroke within the last 1-2 years
have metastatic cancer
It is important to note, however, if you do develop a medical condition after purchasing LTCI, your policy will still cover long-term care.
Consider before purchasing:
How much coverage is needed? Keep what you can afford out of pocket, any help from family, and family medical history in mind.
It is easier to increase coverage then it is to decrease coverage, so do not purchase too much.
Research different companies and policies as everyone requires different care.
Plan for any expenses that may not be covered by your policies (example: moving services if transferring to a facility, changes made to your home for accessibility purposes, etc.)
Purchasing a policy is less expensive when you are younger.
Be mindful of your monthly income to ensure you can afford your policy over time.
Look into the company's premium rate history.
Reach out to a professional with any questions.
How does LTCI Work?
LTCI companies reimburse policyholders for the payments made while receiving long-term care. Often, policyholders are required to pay out-of-pocket for a period of time until they are reimbursed. When filing a claim, the company will review your medical documents and may even send someone to do an evaluation on the care you will receive. Your plan of care will need to be approved, as well, before receiving your reimbursements.
The cost of LTCI is based on the age it is purchased at, the amount the policy pays per day, the duration of time that the policy pays for, and premium rates. Policies have different limits on how much and for how long they will pay, so it is smart to thoroughly review what lengths of coverage you may need. There are a few policies that will pay for a lifetime, but these are few and far between and usually expensive.
In order to purchase LTCI, an application with questions regarding your health and medical history will need to be filled out. Usually, an interview is conducted whether in person or over the phone. Once you are approved, you being paying premiums!
Help with Long-Term Care Insurance
If you or your loved one needs help understanding long-term care insurance policies, filing claims, and disputing denials, our expert team of care professionals can help. We have years of experience advocating for our client's coverage with many different insurance companies.
Call us or visit our website today with any of your long-term care questions!
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