A long term care need can result from any number of factors, from cognitive impairments like Alzheimer’s Disease to an unforeseen accident. Unlike health insurance, long term health care insurance can cover all types of long term care needs. Generally, long term care services fall into two categories: skilled care and non-skilled assistance. Skilled care is care provided by a nurse or a doctor due to the medical nature of the needed care. Non-skilled assistance focuses on assisting individuals eat, bath, dress, toilet and other activities of daily living.
Long Term Health Care Insurance Policies
Long term care health insurance policies offer flexibility regarding how the policy is designed and the type of coverage you desire. There are also a number of additional features available at an additional cost to help you achieve your long term health care insurance planning goals. Most long term health care insurance policies provide coverage for home care, assisted living care, and nursing home care. Long term health care insurance policies offer either a daily o monthly benefit, depending on the policy. When you purchase a long term care health insurance policy you will specify the maximum amount of benefit you will be eligible to receive on either a daily or monthly basis. The cost of long term care varies across the country. It is important to make sure you purchase a policy that will cover the cost of care in the area in which you intend to receive it.
Long term care health insurance policies also include an elimination period. The elimination period is the period of time you must wait to begin receiving benefits once you become eligible. When designing your policy most companies offer elimination periods of 30, 60, 90, or 180 days, the greater the elimination period the lower the premium.
Another important consideration when designing a long term care health insurance policy is the inflation protection option. This option was designed to allow policies to keep pace with increases in the cost of long term care services. Most policies offer no inflation, 3% compounded or simple interest, or 5% compounded or simple interest. This can be one of the more important features of a properly designed long term care health insurance policy.
Won’t Medicare Pay for Long Term Care?
In some cases, Medicare pays expenses for nursing home or facility skilled care, but only for 100 days or less. It does not cover long term stays or non-skilled assistance that may be required, like an assisted living facility, home health care services, and/or nursing home stays greater than 100 days. Unfortunately, this forces many individuals needing long term care assistance to pay for their care from existing assets.
To ensure you receive proper care without compromising lifestyle, asset, or retirement savings it is important to consider a long term care health insurance policy.
When Can I Receive Benefits?
In order to become eligible to receive benefits from a long term care health insurance policy, in most cases, the insured must be certified by a physician as being unable to complete two of six activities of daily living. Activities of daily include such activities as bathing, dressing, transferring, toileting, continence, and eating. In addition, individuals who experience a cognitive impairment like Alzheimer ’s disease or dementia will likely be eligible to receive benefits.
Last, but not least, it is important to choose a long term care insurance company that is highly rated by rating agencies like Standard & Poor’s or A.M Best. Also, look for a company who has offered long term care insurance for at least ten years. To learn more about long term care health insurance please call one of our licensed professionals at (877) 402-2235 or request your long term care health insurance quote request today.