Long-term care insurance (LTC or LTCI) is an insurance product which helps to cover care that is not generally included with “typical” health insurance, Medicare, or Medicaid. In most cases, individuals who require long-term care are generally not sick in the traditional sense, but instead, are unable to perform the basic activities of daily living (ADLs) such as dressing, bathing, eating, toileting, continence, transferring (getting in and out of a bed or chair), and walking. Statistically, approximately 60% of individuals over age 65 will require at least some type of long-term care services during their lifetime.
Status of LTC Today
It is important to know that in the past companies were more liberal in issuing policies than they are today. Because of this change, if you are thinking about buying long-term care insurance and are in good health, but you are delaying purchasing it for whatever reason, you should not wait until your health changes because it may be too late to buy it. Finances permitting, you should not wait to buy a policy. For “older buyers” of LTC insurance, the primary determinant of how long benefits should last is the size of your pocketbook. Practically speaking, most people buy a benefit that is proportionate to the cost of premium.
Parameters of Coverage
Long-term care insurance generally covers home care, assisted living, adult daycare, respite care, nursing home and Alzheimer’s facilities. In regards to in-home “companion care,” like any insurance policy, benefits vary depending on when you purchased the policy, price and the insurance provider. With most plans, however, there is a home care allotment, which is typically available from the first day it is needed. Policies will pay for a visiting or live-in caregiver, companion, housekeeper, therapist or private duty nurse up to seven days a week, 24 hours a day (up to the policy benefit maximum). Remain At Home Senior Care’s medical and non-medical companion care are widely accepted among LTC policies that contain this benefit. NOTE: Most long term care policies will not pay the benefit unless your caregiver is employed by a licensed, insured & bonded company.