Most people have difficulty imagining the possibility of having an adult caretaker as they get older. In a perfect world, individuals could live at home with their families without assistance from outside. However, the reality is that seven out of 10 people will require some help or service when they reach their age.
Care can be costly, and those who do not have the funds to pay for the costs get usually denied the services they require. It is why insurance for long-term care is a crucial consideration. Long-term care insurance helps pay for vital healthcare costs during your golden years, including residential facilities and the home healthcare you receive. Here’s how you can be sure that you and your relative members in your life are protected.
What Is Long-Term Care Insurance?
Long-term care insurance gets designed to support care for those who require assistance with daily living or skilled nursing services. To qualify for an insurance benefit, you must help with basic self-care tasks like showering, dressing, grooming, eating or toileting, or moving. Long-term care insurance is a way to cover all expenses related to health care in nursing homes, assisted living facilities, and adult daycare. It also covers home health treatment costs, including Alzheimer’s and dementia treatment.
Two kinds of Long-term Care insurance policies are available:
- Stand-Alone Policies – Stand-alone policies are for only long-term care. They tend to be more affordable. However, they only provide benefits if you end up making use of them. You can pay in the insurance for 10 or 15 years without receiving any returns. The cost of these policies is not guaranteed and could rise over time.
- Asset-Based Policies – These policies cross between long-term care insurance and life insurance. They usually have higher premiums, but they get fixed. Like life insurance, this type of policy will pay a death benefit to your heirs.
The two main kinds of policies are accessible from a variety of sources which include:
- Individual Plans – The majority of these plans get purchased from an insurance agent
- Employer-Sponsored Health Plans – Benefits are available through your employer’s group policy with a discount. In most cases, as long as you can continue to pay your premiums, you can continue to have insurance even if you leave work.
- Joint Policies – Joint policies cover more than one person, most commonly two married adults or two related adults.
- State Partnership Programs – Most states have partnership programs that allow you to keep a part of your assets. The insurance company will be able to inform you if your plan is suitable.
What Kind of Long-Term Care Insurance Is Not
Long-term care insurance is not health insurance. It could be more explicit about what you expect an Insurance policy for Long-Term care to provide. The most vital thing to remember is that long-term care insurance gets designed to pay for your ongoing care expenses, not medical fees. It will not be able to cover the following:
- Hospitalization
- Routine tests
- Medication
- Medical procedures
- Urgent care needs
These kinds of requirements get covered by health insurance. Long-term care insurance picks up where your health insurance leaves off, paying for nursing home care, assisted living care, or home care.
You Can Pay for Home Care with the Aid of Long-Term Care Insurance
The policies vary concerning the details of the services they provide. Review your policy when deciding the type of care you’d prefer to receive for yourself or a loved one. If you are looking for home care, it is the best option. Most insurance policies cover at least a portion of the cost, and some will cover the total cost of home-based care.
Some insurance companies require that you use a certified home care provider to qualify for benefits. Others include an “elimination period” in which you must pay for services out of pocket until the policy kicks in. Again, double-check your policy details so you know what to expect.
To file a claim, you must meet the guidelines of your insurance policy. Benefit triggers may, under certain circumstances, get based on the condition of your home. They typically include the need for assistance in daily living, suffering from cognitive impairment, or a medical statement of medical necessity.
Do You Think That Long-Term Care Insurance Is Right for You?
Since most people will require some aid when they reach their senior years, it is advisable to consider long-term care insurance before you need it. For the majority of people, this will mean looking into a plan when you are in your 50s or 60s as premiums rise when you age. Furthermore, many insurance companies will not offer coverage if you delay until you develop an existing medical condition or chronic illness.
Long-term care insurance is one option for helping you cover the costs of in-home health care so that you or a loved one can maintain their independence at home; if you are unsure whether you’re eligible or the best way to go through the options available, Ottawa Life Insurance is available to help.
For further questions, to request resources, or to inquire about getting or becoming a caregiver, contact Ottawa Life Insurance today by calling (613) 454-1424 or emailing us at info@ottawa-lifeinsurance.ca.
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