A lot of us donât like to think about this, but inevitably there will come a time where we will all need help taking care of ourselves. So how can we start preparing for this financially?
Many people opt to purchase long-term care insurance in advance as a way to prepare for their golden years. Long-term care insurance includes services relating to day-to-day activities such as help with taking baths, getting dressed and getting around the house. Most long-term care insurance policies will front the fees for this type of care if you are suffering from a chronic illness, injury or disability, like Alzheimerâs disease, for example.Â
If this is something you think youâll need later on, itâs crucial that you donât wait until youâre sick to apply. If you apply for long-term care insurance after becoming ill or disabled, you will not qualify. Most people apply around the ages of 50-60 years old.Â
In this article, we will discuss long-term care insurance, how it works and why you might consider getting it.Â Â Â
The process of applying for long-term care insurance is pretty straight forward. Generally, you will have to fill out an application and then youâll have to answer a series of questions about your health. During this point in the process, you may or may not have to submit medical records or other documents proving the status of your health.Â
With most long-term care policies, you will get to choose between different plans depending on the amount of coverage you want.Â
Many long-term care policies will deem you eligible for benefits once you are unable to do certain activities on your own. These activities are called âactivities of daily livingâ or ADLs:
In most cases, you must be incapable of performing at least two of these activities on your own in order to qualify for long-term care. When itâs time for you to start receiving care, you will need to file a claim. Your insurer will review your application, records and make contact with your doctor to find out more about your condition. In some cases, the insurer will send a nurse to evaluate you before your claim gets approved.Â
Itâs very common for insurers to require an âelimination periodâ before they start reimbursing you for your care. What this means is that after you have been approved for benefits and started receiving regular care, you will need to pay out of pocket for your treatments for a period of anywhere from 30-90 days. After this period, you will get reimbursed for your out-of-pocket expenses and from there.
Unfortunately, the statistics are against our odds when it comes to whether or not we will eventually need some type of long-term care. Approximately half of people in the U.S. at the age of 65 will eventually acquire a disability where they will need to receive long-term care insurance.Â Of course, the problem is, long-term care can be really expensive. Unless you have insurance, youâll be paying for your long-term care completely out-of-pocket should you ever need it.
Your standard health insurance plan, including Medicare, will not cover your long-term care. The benefits of buying long-term care insurance are that:
If youâve recently started thinking about shopping for long term-care insurance, youâll want to keep a few things in mind:
There are a few different ways to go about getting long-term care benefits. You can either buy a policy from an insurance broker, an individual insurance company, or in some cases, your employer. Obtaining long-term care insurance through your employer is probably going to be cheaper than getting it as an individual. Ask your employer if itâs included in your benefits.Â
Many people also opt to shop for hybrid benefits insurance policies. This is when a long-term care policy is packaged in with a standard life insurance policy. This is becoming a lot more common in the world of insurance. Keep in mind that the approval process may be slightly different for a hybrid insurance policy than of that of a stand-alone long-term care insurance policy. Make sure to ask about the requirements before you apply.Â
There are not very many long-term care insurance companies that exist as there once was. Itâs hard to wrap our heads around purchasing something that we donât yet need. However, here are a few examples of companies that offer competitive long-term care packages:
Understanding Long-Term Care Insurance is a post from Pocket Your Dollars.