Seniors are already dealing with physical and emotional stressors that come with aging, don’t let financial stress be added to the mix! This is why we happily accept long-term insurance at Around the Clock Care. If you need more information on long-term care insurance and how it works, keep reading!
How long-term care insurance works
To purchase long-term care insurance, you first need to fill out an application and answer health questions. The insurer may ask to see medical records, interview you by phone, or face to face.
You get to choose the amount of coverage you want. The policies usually cap the amount paid out daily and the amount paid out for your lifetime.
Once you’re accepted for coverage and the policy is issued, you begin paying set premiums.
Under most long-term care policies, you’re eligible for benefits when you are unable to perform at least two out of six “activities of daily living,” called ADLs, on your own, or you suffer from dementia or other cognitive impairment.
The activities of daily living are:
- Caring for incontinence.
- Getting on and off the toilet.
- Transferring (getting in or out of a bed or a chair).
Once you are ready to make a claim, you will be evaluated by a medical professional and then put on a plan-of-action for necessary care steps.
For most policyholders, you’ll have to pay for long-term care services, usually up to 90 days, before the insurer starts reimbursing you for any care. This is called the “elimination period.”
The policy starts paying out after you’re eligible for benefits, and after you receive paid care for that period.
How to purchase long-term care insurance
Similarly to most insurance policies, you can buy directly from an insurance company or through an agent.
If you are still working, you may be able to purchase it through your current employer.
If you are left to your own devices, get quotes from several companies for the same coverage to compare rates. This is still a great idea if your employer does offer it, you still want to make sure you are getting the best rate!
The American Association for Long-Term Care Insurance advises working with an experienced long-term care insurance agent who can sell products from at least three carriers.
In the 2020 price comparison, the rates were vastly different from company to company. Some companies even offer a shared care option for couples when both spouses buy policies. This lets you share the total amount of coverage, so you can draw from your spouse’s pool of benefits if you reach the limit on your personal policy.
Information found at https://www.nerdwallet.com/blog/insurance/long-term-care-insurance/#howitworks