Long-term care insurance is designed to help you offset the costs of living in a nursing home, an assisted living facility, or for receiving care in your home. Long-term care insurance policies are sold by insurance companies and financial investment companies.
These insurance policies are designed to pay some or all of the daily expenses for a person living in a nursing home, an assisted living facility or who is receiving in-home care. For example, a policy may provide $250 per day for a person receiving services in a nursing home, an assisted living facility, or through a home healthcare agency.
In order for the policyholder to use their long-term care insurance, they must be a). residing in a nursing home, b) residing in an assisted living facility; or c) receiving non-medical home care services for activities of daily living.
The policyholder must be receiving assistance with two of the five activities of daily living or ADL’s identified below:
- Bathing
- Dressing
- Grooming
- Toileting, and
- Mobility.
In short, the insured must be receiving assistance, in at least two of the above activities, from the care staff, in the nursing home or assisted living facility or from a private duty home-care aide.
Approximately 90 days (waiting period) after being admitted to a nursing home or assisted living facility or signing up for in-home care services, the insured can start using their long-term care insurance benefits. Once a request is made to their insurance company that they want to start using their benefits, an RN will make a home visit to the policyholder and do a thorough assessment of the person’s physical and mental abilities. The assessment will determine what help is needed with activities of daily living.
As long as the assessment indicates that the insured needs assistance with at least two of the activities of daily living, then the insured may start to utilize their long-term care insurance benefits.
According to LongTermCare.gov “Someone turning age 65 today has almost a 70% chance of needing some type of long-term care services and support in their remaining years.” The cost of living in a nursing home, assisted living, or non-medical home care can be financially devastating. A long-term care insurance policy may help defray some of the costs of living in a facility or receiving home care services.
This allows the person to retain their investments and savings for a longer period of time before they need to pay the costs of living in a facility or receiving in-home care services. Also, having a policy like this can help the partner, who may still be living in the home, maintain their home and lifestyle.
We are here to help. Our staff has a combined 40 years of experience and we specialize in the evaluation of care of those who wish to remain in their homes as long as possible.
