Long-Term Care Insurance
Is Long-Term Care Insurance for You?
Do you have assets you want to protect? Do you want to pay your own way? Can you afford it? Will you qualify?
If you decide to purchase a long-term care insurance policy, be sure that you understand all the details of the plan.
Know the type of services the policy pays for. For example, will it cover long-term care services in all facilities or just nursing homes?
What are the conditions for collecting benefits? Often a person must need help with two or three out of six ADLs before benefits can be paid. Nearly all policies cover dementia but, according to the policy, who determines if someone has dementia or Alzheimer’s?
Benefit levels determine how much is paid and over what length of time. A policy may limit the number of years services can be paid for or a total dollar amount. Check local prices to see if the set benefit levels would pay for care in your area.
An elimination or deductible period is similar to a deductible on car insurance. You pay for costs during the deductible period. About 2/3 long-term care insurance plans have a deductible time period of 90 to 100 days. One question to ask, if you have repeat visits to a nursing home, does the count of days start over for each visit or are they cumulative?
One important choice to be aware of when purchasing long-term care insurance, is whether to buy inflation protection or not. Inflation can have a big effect on the daily rates for nursing home care.