LONG-TERM CARE INSURANCE

There are many options available for long-term care. First, you can obtain traditional long-term care insurance that covers the cost of many different types of care:

• At-home care where you can get skilled nursing care, rehabilitative therapy or help with personal care
• Residence in memory care facilities
• Hospice care
• Adult day service center care
• Residential living facilities
• Convalescent homes

Second, you can get a hybrid policy that combines traditional life insurance with long-term care insurance. This kind of policy gives you access to the death benefit funds provided by the life insurance policy to help you pay for long-term care.

The third choice is to add a rider to your life insurance policy that allows you to use part or all of your death benefit for your long-term care.  

There are many variables to be considered when choosing these policies from the insurance companies that offer them. One of those variables is the maximum age at which the policy can be issued. Another is the length of time the costs of care will be covered. It’s important to compare all the variables of any long-term care policy you are considering. For help obtaining your best long-term care coverage, contact MBhealth.

Any of the insurance companies offering long-term care insurance require certain benefit “triggers” to be experienced before they start paying for care. For example:

• The individual is unable to manage at least two of six Activities of Daily Living (ADL) without help, such as being able to move from a chair into bed or keeping themselves clean
• They have a cognitive impairment
• A doctor recommends they begin to receive long-term care

In the case of the ADLs, the person must have lacked the ability to manage these ADLs for at least 90 days. If cognitive impairment exists, the person must require significant supervision.

Pre-existing conditions that caused these disabilities are not covered by long-term care insurance. There may also be a maximum limit on the years or amount of benefits to be paid.

Before benefits begin to be paid, there is often a waiting period which some companies call an elimination period. This typically lasts from 20 to 100 days before the policy will pay for long-term care costs.

Once a long-term care policy is obtained, the premiums and benefits may change each year to keep up with inflation. Are you looking for long-term care insurance? Talk to MBhealth to get the best care insurance for your situation.  

Long-term care insurance policies often pay for care that is received at home, for example, for payment of home health care or personal care assistance. In other cases, a person may need to take up residence in a memory care or rehabilitation facility. The benefits can be paid to the family in the event of home care or the facility in the event of residential care.

Many companies that previously offered long-term care insurance have stopped doing so. There are currently six companies offering this type of insurance. If you are considering long-term care insurance and you can afford it, your prices will be lower if you obtain this insurance while you are in your 50s or 60s.

Over time, your premiums will increase if your policy has a provision for inflation growth. At the time you will need long-term care, care costs will undoubtedly be higher than they are today. To ensure that you receive the kind of care you want when you are no longer able to care for yourself, your benefits need to gradually increase along with the rate of inflation.

When you are shopping for long-term care insurance, contact MBhealth to find the perfect policy to put your mind at rest.

Benefits of long-term care insurance cover the many expenses of care provided to an older person who can no longer fully take care of themselves. The criteria for beginning to receive these benefits may include:

• Being unable to perform at least two out of six Activities of Daily Living such as feeding oneself, bathing, dressing or moving from chair to bed
• Experiencing cognitive impairment
• Receiving a recommendation from a medical doctor

When a person is qualified for long-term care, this insurance policy begins to pay for the costs for the person’s care. The exact benefits provided vary somewhat by state, but typically include:

• Nursing home care
• Residence in a care facility that provides assisted living
• Home health care
• Adult day care
• Homemaker services
• Hospice
• Respite care

Some long-term care insurance policies require a waiting period of 20 to 100 days, but others do not have any waiting period.

Many residential facilities offer personal care, recreational activities, meal service, and medical services. Aging individuals obtain long-term care insurance to ensure their comfort, protect their wealth and ensure there is an inheritance for the next generation. When you are comparing long-term care policies, contact MBhealth for guidance to the best type of policy for your situation.

The amount of long-term care you should have is a very personal decision that is best made with advice from an experienced insurance consultant. Of course, the amount of long-term care insurance you can afford is also a determinant of how much insurance you should have.

You will need to take the following factors into account when you make your choice:

• Your current age
• Your current health condition
• How long you want the care benefits to last
• Whether or not you want your benefits to keep up with increases due to inflation

Your net worth and savings also have relevance, as the more savings you have, the less insurance you may need or choose to self insure for a longer period.

You also may want to fold your long-term care insurance into your life insurance policy, creating a hybrid that enables you to utilize death benefits for your long-term care.

If you make no plans for long-term care insurance, you will probably be limited to Medicaid which provides limited choice for those who need skilled nursing care. If you are currently in the market for long-term care insurance, please call MBhealth for guidance as you decide on the best arrangements for your future.