A Complete Guide to Long-Term Care Insurance

Discussing long-term care insurance can be emotionally complicated. It’s hard to picture a scenario when you may be disabled or simply unable to live by yourself. However, there may come a time when long-term care insurance proves to be your financial savior.

If you suffer a health crisis in the future, long-term care insurance offers protection so that you don’t have to risk going into debt to help pay for your treatment.

Long-term care insurance covers you if you opt to stay in a nursing home or an assisted living facility. It pays for the long-term care service that you may need as you age or if you suddenly become sick and bed-ridden. You can rely on long-term care insurance if you need assistance in completing daily tasks.

The History of Traditional Policies 

Generally, you have to pay an annual premium for long-term care coverage. However, be aware that the current policy includes a waiting period before the coverage starts. You may also have a time limit on your coverage. Besides, traditional policies also have a history of rising premium costs.

Are Traditional Policies Still Worth It?

Traditional coverage is still considered more cost-effective. In most cases, choosing a hybrid policy only makes sense if your life savings are at risk.

Why Do You Need Long-Term Care Insurance?

If you have lost the ability to take care of yourself due to an illness, accident, or age-related disease, you will need long-term care insurance. This insurance policy provides funds to cover your long-term care expenses. You’ll have the peace of mind that you’ll be taken care of without compromising your assets. Long-term care insurance steps in where government programs are unable to help.

What Does Long-Term Care Insurance Cover?

Long-term care insurance covers you when living at home is no longer sustainable. The following are a few institutions/facilities covered by long-term care insurance:

  1. Nursing Homes/Assisted Living Facilities

This policy covers nursing home care. Nursing homes provide the highest level of care possible around the clock to their residents. Staying in an assisted living facility is another alternative. These facilities are generally condos and apartments where people can stay on their own but sometimes need assistance. Assisted living facilities are rising in popularity because they allow you to remain independent while also providing the necessary care when you need it.

  1. In-Home Care 

You can receive care at your residence either from your loved ones or through professional caregivers. Professional caregivers include nurses and physical therapists. You may also receive the service of health aides. Health aides help prepare meals, do laundry, clean around the home, and offer personal hygiene assistance.

  1. Adult Day Care

Adult daycare is another long-term care insurance option—these facilities house residents who are unable to perform their daily functions on their own. The residents receive assistance for bathing, eating, getting dressed, and using the bathroom.

What Are the Different Types of Long-Term Care Insurance?

Traditional Coverage 

Traditional coverage starts when you are unable to perform basic living tasks due to cognitive impairment. You’ll also have to deal with a waiting period of a month or two before your coverage starts. Traditional long-term care policies ensure that staying in a nursing home or facility will not drain your loved ones’ pockets. You can add an inflation rider to your premium to increase your benefit each year.

Hybrid Coverage 

This policy combines life insurance with long-term care insurance. It allows you to access the death benefit (which your beneficiaries are entitled to in the event of your death) while you are still alive to help pay for your long-term care. The premiums are fixed and are not tax-deductible. However, it’s important to remember that the money in your policy may not generate a great return through investments.

How Can You Qualify for Long-Term Care Insurance?

Long-term care insurance policies are expensive, which means this type of coverage is often unaffordable for many people. Therefore, you must look for discounts while considering this policy. If you lack assets, you may qualify for long-term care assistance through Medicaid.

Will Whole Life Policies Cover Long-Term Care?

Over the last couple of years, new forms of coverage have emerged: whole life policies that cover long-term care. Under the terms of this new coverage, your beneficiary can still receive money even if you don’t need long-term care. You also have the option to lock in your premium. This policy should be considered if you have an extensive history of health problems.

Why Do You Need to Start Shopping Early?

Start researching long-term care insurance in your 50s. This is because once you reach your mid-50s, your initial premiums will be very expensive.

There are multiple variables that are involved in finding the right long-term care insurance policy. Contact our experts at J. Archer Insurance Group or give us a call @ 619-4347-4700 if you have more questions related to long-term care insurance. We are willing to assist you with all your insurance needs.

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