Surprisingly, there are only a few insurance policies that pay for long-term care. Long-term care insurance can cover various costs of senior assisted living like home care, assisted living facilities, or nursing homes. Sometimes LTC will pay for adult day care or necessary home remodeling to make living safe for seniors with special medical mobility needs. The key to getting the best insurance coverage with the most flexible options for long-term care, is to purchase a policy as early as you can. The younger the policyholder, with good health, the better the chances of qualifying for better care coverage down the road. Seniors applying for long-term care with existing illnesses or chronic conditions will be less likely to qualify or will have to pay much higher costs.
The costs of senior home care services can cost an average of $14-32 per hour depending on region and level of skilled nursing needed. Typically seniors who use long-term care use twenty hours of home care each week for about thirteen months of care.
Long-term care insurance is different than other kinds of policies in that it covers in-home care services. Personal and custodial care are also provided in many instances at home, in a community, or in a facility. Long-term care (LTC) is a privately paid insurance plan that covers personal care needs. Sometimes a user must be subjected to a waiting period before using LTC funds, between 20-30 days, so check your policy to be sure of when the benefits can be collected. The earlier a senior buys long-term care insurance, the better the chances of securing the policy at an affordable rate.
Things to Know About Medial Health Insurance
It is important to note that most private insurance policies do not cover personal home care. Long-term care insurance is private pay (out of pocket), and is not covered through medical health insurance. Health insurance only covers a very limited range of specific types of long-term care. Also, disability insurance does not cover home care.
Depending on the policy, life insurance can pay for home care and certain types of long-term care. Life insurance policies that have an “accelerated death benefit” may provide cash advances while the policyholder is living. Any money taken upfront will subtract from the amount received by beneficiaries upon death, however.
Accelerated death benefits may become available to policyholders under certain conditions, such as needing permanent residence in a nursing home or becoming terminally ill. It is wise to review your insurance policy to see what coverage is offered and when you may access it.
Another option is for a life insurance holder age 70 or older to sell his policy to an investor. This is called a Life Settlement. The proceeds of the sale are taxable and may be used to pay for home care if needed.
Title: Can Insurance Pay for Home Care?
Reviewed by Timothy Green on Feb 11
Summary: Great information on Long term care insurance
Description: very informative and helpful, thank you