Long term care often refers to care provided to seniors and the disabled. Although some senior and disability care is offered through health insurance and Medicare, long term care insurance covers the gaps left by these coverages.
Services Covered By Long Term Care Insurance
Long term care insurance helps cover certain services for those who need it, such as:
- Professional home care (skilled nursing and occupational, speech, physical or rehabilitation therapy)
- Adult daycare
- Hospice care
- Nursing homes
- Alzheimer's facilities
- Home modifications for disabilities
- Assisted living
- Personal care (bathing, dressing, eating, etc.)
For example, if you or a loved one needs a nursing home, long term care insurance can provide $161 a day over the course of a few years for nursing home care.
How It Works
Long term care insurance is different than other policies, in that premiums are paid before care is needed (instead of during that time). A policyholder should purchase the long-term care insurance policy before it is needed in order to have coverage when they do.
For example, say a senior decides to purchase a long-term care insurance policy. They pay premiums for a few years. After five years, the senior develops Alzheimer's and needs to be admitted to an Alzheimer's facility. That senior will not be expected to continue paying premiums on their long-term care insurance policy.
If a policyholder becomes eligible for the benefits and files a claim, they must wait through an elimination period, which serves in place of the deductible. In this period, all health and medical expenses must be paid by the policyholder until benefits begin. Benefits are generally paid through an agreed amount until the lifetime maximum.
How Much It Costs
Long-term care insurance can be expensive, depending on where you look. Costs are calculated depending on your age, policy type and limits, location, and coverage amounts. On average, policyholders pay around $2,207 a year (about $183.91 a month) for long-term care insurance.
Be sure to consider if you or a loved one needs long-term care insurance, and which policy fits your income most. It's important not to spend too much on insurance. But it's just as important not to go without necessary coverage. For more information, contact Berryhill Insurance Group today.
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