October is Long-Term Care Planning Month. The month raises awareness among senior individuals and their caregivers about the excessive expenditures of adult healthcare. Unfortunately, this is not something many plan for, and many need to be made aware that most insurance covers do not cover long-term non-medical care and help for seniors and their everyday activities.
A 65-year-old adult today has a nearly 70% likelihood of requiring long-term care service and support at some time in their later years. Long-term care, which can take many different forms to meet a person’s needs for help with daily living (ADLs), can be expensive and is typically not covered by private health insurance. Keep reading to find out more about long-term care insurance.
History of Long-term Care Insurance Planning Month
Long-term care insurance has been available since the late 1970s. However, in the early 1990s, the notion gained traction despite few insurance companies giving many options for long-term care insurance at the time. Long-term care is non-medical and refers to the personal care and services older adults need to complete everyday activities and maintain a high quality of life. Personal grooming, clothing, bathing, eating, and other physical tasks are examples of services. Long-term care also includes accommodation, which may or may not include the assistance of experienced nurses.
It is hard to rely on accessible sources of income or an insurance plan to live comfortably later in life. Previous generations relied on retirement savings, pensions, social security, and other benefit systems to supplement their income. Many monetary perks for covering long-term care are no longer available. Adults not in the senior citizen category and living paycheck to paycheck are now experiencing difficulties. Savings plans necessitate an early start. The sooner you start, the more fruitful your efforts will be. It is not too late to begin, which is the awareness this month aims to create.
Why is Long-term Care Planning Month Important?
It offers a head start: Long-Term Care Planning Month gives you a head start on planning for future caretaking expenditures. It is critical to be prepared, as the financial consequences can be extremely tough to sustain.
It ensures better care for seniors: Investing in long-term care insurance plans improves financial stability and ensures that seniors receive the necessary care and diligence they require.
The month raises awareness: Long-Term Care Planning Month raises awareness among individuals and senior citizens and urges them to consider long-term care planning. Numerous packages are available, and the month-long observance helps inform and educate people about this.
Long-Term Care Insurance Policy Types
Long-term care insurance can be purchased in two ways. Individuals can buy independent long-term care insurance policies from their preferred insurance provider or get long-term care coverage as part of a life insurance plan.
Both plans demand premium payments as long as the policy is ongoing, and the policyholder must submit a claim whenever the coverage is needed. In all types of plans, the policyholder selects the quantity of coverage desired, which frequently influences the cost of the plan’s premium. Most policies limit the benefits that can be paid out daily if the policyholder needs to use them. They also limit the benefits the policy can pay out during the policyholder’s lifetime.
What Is Covered by Long-Term Care Insurance?
Long-term care coverage helps pay for a person’s care when they require assistance with ADLs due to a persistent medical condition, disability, or disease. Most policies require an older adult to need assistance with at least two ADLs: bathing, eating, dressing, navigating the bathroom, and getting in and out of a bed or chair. A healthcare practitioner must ascertain that the senior needs this assistance for over 60 days.
If the long-term care plan is part of a life insurance policy, the plan will typically pay 2% of the death benefit toward long-term care monthly costs for three to five years. The funds could be used for care in a skilled nursing facility, an assisted living complex, or in their own home. The policyholder could also spend the money however they see fit, such as paying a family member to provide care.
Some long-term care insurance companies refuse to cover people with pre-existing chronic illnesses or ailments. These people, however, should not be discouraged from pursuing long-term care insurance; they will most certainly pay more for a plan, but the coverage will still be advantageous if they require long-term care services.
Exactly how does Long-term Care Insurance Operate?
No matter the plan a person selects, a doctor must recommend long-term care support for long-term care insurance coverage to pay its share of the costs. If the person has a stand-alone policy, the insurance company is more likely to make direct payments to a home care agency or skilled nursing facility on their behalf. Some stand-alone plans will pay the person directly.
Most policies mandate the policyholder to pay for the long-term care services they receive during the “elimination period,” which often lasts 30, 60, or 90 days. Following this period, the insurer providing the long-term care policy begins reimbursing them up to the maximum daily amount permitted by their coverage until they reach the policy’s entire lifespan.
Summary
Long-term care is a common—and sometimes impossible—expense, but the correct long-term care insurance coverage purchased at the right time can significantly reduce that financial burden. Not to mention that it broadens a person’s care options as they require them, giving them and their loved ones a sense of relief as they navigate the final years of their existence.
If you’re considering getting long-term care insurance, talk to a licensed insurance broker about the options. They can assist you in finding a plan that suits your exact coverage requirements while remaining within your budget. They can also look for specialist plans that consider chronic health concerns. Sequoia Senior Solutions provides senior individuals with non-medical care and assistance with their daily activities. We offer support to your loved ones as they age.