How Exactly Does Long-Term Care Insurance Work?
Since the vast majority of Americans have no idea about long-term care insurance, they probably wouldn’t understand how it works. Basically, when an individual purchases a long-term care insurance policy (LTCi), they are protecting themselves, their assets, and possibly their family from financial burdens in the future, in the event long-term care of some kind is required.
Long-Term Care Insurance Carlsbad CA – How Exactly Does Long-Term Care Insurance Work?
First, let’s define long-term care.
This is not referring to a nursing home for two weeks after major surgery to help somebody regain strength and mobility. It refers to any type of long-term care that can extend for many weeks, months, or even years. That might be a nursing home, but it can also be an independent living facility, assisted living community, or home care support that allows the individual to stay in the comfort of their own home.
Second, consider the policy carefully.
Not all long-term care insurance policies are the same and they don’t all work the same. For example, some long-term care insurance policies will pay out directly for long-term care while others offer reimbursement.
Third, there will likely be a maximum daily and total benefit amount.
In other words, there will be a maximum number of days that long-term care will be covered. Depending on the type of coverage needed, a family may push up against the maximum daily allotted amount long before they even reached the total benefit payout amount while others may quickly use up the total benefit amount long before they would have maxed out on their daily allotment.
It’s important to understand the policy, determine just how much it will cover, and how long the policy might pay out in the event it’s needed.
Policyholders may be required to prove they need substantive assistance with at least two or more Activities of Daily Living (ADLs). It may also be necessary as part of the policy to determine whether or not this assistance will be required for at least 90 days, which for many policies is the minimum requirement to qualify for ‘long-term care.’
When contemplating a long-term care insurance policy, it’s certainly a great option, but it’s also a good idea to sit down with an experienced broker to talk about the benefits, costs, and other factors that could impact a person’s decision. There may very well be times when a person pays into one of these policies for years and never requires long-term care. However, with the cost of long-term care skyrocketing right now, it could quickly financially devastate a family or individual if they are not adequately covered.
If you or a loved-one are considering Long-Term Care Insurance Carlsbad CA, please contact Steve Elliott at Capstone Insurance for an honest discussion about your future and your options. Call today (858) 350-3161.
I work with all the major insurance companies and my objective is to help my clients determine if long term care protection makes sense for them and if so, to help them shop the market to find the best company at the best rate
I specialize in Traditional Long Term Care Insurance as well as Hybrid Long Term Care Plans which are either a combination of Life Insurance and Long Term Care or an Annuity Plan with Long Term Care
I’ve been specializing exclusively in Long-Term Care Insurance Planning for over 21 years.
Steve was recognized as a 2003 Long Term Care Expert of the Year at The National Long Term Care Producers Summit
2006 was awarded Senior Market Advisor of the Year Finalist by Senior Market Advisor Magazine
National Speaker for Numerous Industry Meetings
Awarded Nations Top 10 Agent 8 times by the American Association of Long Term Care Insurance
Author of numerous published articles on long term care planning
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