A Handbook on Insurance for Long-Term Care

Many people suffer from the dilemma if they should purchase long-term care insurance or not. Since it is extremely impossible to anticipate your finances or health decades into the future, choosing insurance for long-term care is a more complicated decision than it is for other types of insurance.

What distinguishes medical insurance from long-term care insurance?

People who require assistance with basic daily functions like dressing or washing or who may develop long-term cognitive difficulties such as Alzheimer’s disease are eligible for long-term care insurance. It can assist with the cost of personal assistants, adult day care, or institutionalized life in a nursing home or assisted-living facility.

How does it operate?

Policies often pay a fixed amount based on each day, each week, or each month. Prior to purchasing a policy, find out what services are covered and how much is paid for each type of care, such as adult day care, assisted living, nursing homes, and home personal care services. Inquire as to who counts as a family member and whether the coverage covers their training. Some policies will reimburse family members who are giving care. You can always take the help of a financial advisor to learn more about Long Term Care Insurance. Verify whether and by how much benefits have been raised to adjust for inflation. Inquire about the policy’s maximum payout amount and whether a spouse or domestic partner may share in the benefits.

When will I be able to benefit?

Make sure you are aware of the situations in which you can benefit. It is referred to as the “trigger.” Proof that you require assistance with at least two of the six “activities of daily living”—bathing, dressing, eating, moving about, and getting out of bed—is frequently required by policies. The other activities include continence and reaching and using the restroom. If you have been diagnosed with dementia or any type of cognitive impairment, you can also access your coverage. Insurance companies typically request an assessment from your doctor or send a representative to do an evaluation.

Many policies will not begin to pay until after you have paid for a predetermined amount of time, like twenty or one hundred days, out of your own pocket. This time is often referred to as the elimination period.