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What is long-term care insurance & how does it work?

September 8, 2022

What is long-term care insurance & how does it work?

If you’re considering investing in this type of insurance, you’re probably asking yourself questions such as:

“What is long-term care insurance?”

“Do I need long-term care insurance”

“What does long-term insurance cover?”

If you don’t have the answers to these questions, you might feel stressed. After all, you have to plan for your future so that you live a long, happy life—but how do you know if this is a way to do that? You also might be stressed about the cost of long-term care insurance.

That’s why we’ve put together this article. We’ll provide you with all the information you need to know about long-term care insurance. Once you know what you need to, you can decide if long-term care insurance is right for you.

What is Long-Term Care Insurance?

Long-term care insurance is a type of coverage that is different from your everyday health insurance. With long-term care insurance, you’re preparing for the day when you might need additional care that is related to your health but that isn’t directly dealing with your health problems.

Basically, long-term care covers different types of care you might need when you’re older, lost mobility, mental capacity, or became disabled,

This might include covering adult or personal care at home, home health care, or nursing-home care. It’s used when you have a disabling or chronic condition that requires you to have supervision and day to day assistance.

If you have long-term care insurance, you’re likely to be covered by any care you receive at an adult day care center, an assisted living facility, a nursing home, and your own home.

When to Get Long-Term Care Insurance?

Many people have to think about long-term care insurance before they get older. They’re preparing so that they can have fulfilling lives in the future, without any annoying complications that come with common age-related disorders. Such considerations come to mind as dependency on family members, financial depletion of life long hard-earned money.

Usually, when people are in their fifties or older, they need to start thinking about how they’re going to save for these potential life events. Those who don’t worry about it now may end up paying far more money later on. Often, people do not have the personal resources to pay for extended long-term care expenses.

Because it’s not possible to get affordable long-term care insurance with a debilitating condition, it’s necessary to plan ahead and get this insurance sooner rather than later. Most people buy it when they’re in their fifties or sixties.

How Does Long-Term Insurance Work?

To get started, you have to get in touch with a long-term care insurance broker expert. They can explain the different policy terms, costs, financial stability of insurance companies, various riders/endorsements and how a policy like long term insurance applies with your overall life planning.

To get started, your broker will assist with the application process, underwriting questions and advise on coverage eligibility. Once the Insurance company has decided that you’re a good candidate for long-term care insurance, you can choose how much coverage you’re planning to get. Usually, there’s a max that can be paid per day by the insurer. There’s also a cap on how much they will cover you throughout your lifetime.

There are various policy requirements to satisfy prior to coverage being activated. Usually, you become eligible for the benefits of the policy once you are no longer able to do two out of a total of six ADLs, or “activities of daily living,” on your own. These ADLs include:

  • Getting in and out of your bed
  • Getting in and out of a chair
  • Any other type of transferring (as described above)
  • Eating
  • Dressing
  • Being able to care for incontinence
  • Bathing

If you’ve ever had to care for an older family member, then you are likely familiar with the importance of having a caretaker for any of these activities. In addition to not having two of these ADLs, you will also become eligible for the benefits if you suffer from a cognitive impairment like dementia and certain disability events.

About CMR | PolicySmart®

PolicySmart’s risk management consultants provide independent group benefit, retirement and commercial insurance advice by reviewing your current portfolio of policies to improve coverage and reduce cost. By using our proprietary database – The CMR Database® (comprising some 13,000 brokers and specialists globally), we maximize access to the insurance and retirement industry providing greater options that will translate to better coverage and lower cost.

Please email croche@policysmart.com or call 888-873-1982 or 212-447-4300 for more information.  www.policysmart.com

 

 

 

 

About CMR | PolicySmart®

CMR & Associates’ risk management consultants provide independent group benefits, retirement and insurance advice by reviewing your current plans to improve coverage and reduce cost. Through CMR’s proprietary database – The CMR Database® (comprised of some 13,000 brokers and specialists globally), we maximize access to the insurance and retirement industry for greater options that will translate to better coverage and lower cost.