nurse with an elderly asian woman

What You Need To Know About Long-Term Care Insurance Claims

How many times have you thought about retirement?

Do your plans involve any health care plans?

Are you taking good care of yourself to ensure good health in your golden years?

Even if you do, what if something happens and you need to be taken care of?

You think Medicare has it covered, right?

Well, I hate to burst that bubble but, long-term care is among the things Medicare doesn't cover.

If by any chance you’ll need long-term care services in your old age, you may burn through your retirement savings paying for senior care and start having problems once it runs out.

You may not know this, but nursing homes cost a little over $100,000 annually, a figure that’s projected to rise in the future.

This can prove to be a heavy financial burden, more so in your retirement years when you may no longer be working.

Long-term care insurance claims can help protect you against such expenses.

What Is Long-Term Care Insurance?

Long-term care insurance, shortened to LTI, is a policy that covers expenses associated with chronic health conditions.

Essentially, it is a health insurance cover for something that you are not likely to recover from, such as Alzheimer's.

As a policyholder, you’ll pay premiums regularly until you need to get care.

When the time comes that you need care, the insurance company will offer you funds on a daily or monthly basis depending on the policy.

If you live a long life, at some point, you’ll need some kind of care, whether in your home or in a senior facility.

Unlike healthcare insurance, long-term care claims only pay for eligible personal care.

Eligible care typically includes daily living activities such as bathing, eating, and mobility.

LTC policies are not usually standardized, like regular health insurance claims to you must compare benefits, coverage, and premiums.

Besides that, these premiums rise with age, so be prepared for a price increase in the future.

Once you receive care, however, you’ll no longer have to make payments.

What Do Long-Term Care Insurance Claims Cover?

Different long-term care insurance companies may offer different covers, but there are certain things that are basic. Some of them include:

  • Adult daycare
  • In-home care
  • Nursing home care
  • Community care
  • Skilled nursing care
  • Care by family members

You should inquire with the insurance company because some of them do not pay for family caregivers unless they have the appropriate license. You may have to stay in a state-licensed agency or a care facility for them to pay your claim.

Is Long-Term Care Insurance For Everyone?

Why should you bother yourself with long-term care insurance claims?

What if you don’t need care in the future?

Most people only consider purchasing these premiums when they are closer to retirement age.

However, at that age, premiums are usually more expensive than they would be at a younger age.

Long-term care insurance companies may decline long-term care insurance claims to people already suffering from pre-existing conditions or a history of serious health conditions.

If you are in this position and the company accepts to offer you the policy, you may have to pay more.

Can Long-Term Disability Insurance Cover Your Long-Term Care Needs?

In a nutshell, no. Disability insurance pays benefits based on income.

Once you retire, you may have to depend on savings and social security funds.

The problem with long-term disability claims is that most of them end at age 65.

What’s The Best Time to Buy Long-Term Insurance?

Ideally, you should purchase the premiums in your 50s.

If you wait till you hit 60, it might be hard to find coverage, and it’ll be more expensive.

If you buy before turning 50, you’ll be committed to payments for a longer period of time.

What Will Happen If You Don’t Use The Claims?

Unfortunately, traditional long-term care claims do not offer a way for family members to recoup unused funds.

To get some kind of compensation from it, you may purchase a hybrid cover instead.

This will offer you either long-term care or death benefits depending on what you’ll need.

A hybrid premium is so much more expensive, though.

What Are Long-Term Care Insurance Waiting Periods?

Even if you do not have a pre-existing health condition, an insurance company may subject you to a waiting period before they approve your claim.

This waiting period is also known as the elimination period, and everyone has to satisfy it before they get benefits.

Long-term insurance policies don’t pay for short-term care, so the company imposes an exclusionary period every time you require care.

Some long-term care insurance companies may assume that during this period, your Medicare policy will take care of intermittent needs.

What Are The Long-Term Care Insurance Costs?

The most significant downside to long-term care insurance claims is how expensive it is.

It's cheaper compared to all the benefits you’ll get if the time comes and you need long-term care, but these policies come with hefty premiums.

Consider several factors to determine the costs:

  • Your age when you start paying the premiums. Generally, the better health you are in and the younger you are, the cheaper they are.
  • The maximum benefit the insurance company will pay per day
  • The maximum length of time they will pay for the benefits
  • The waiting period. The longer you take to get approval, the cheaper the premiums get
  • Whether it’s a hybrid policy

Do You Think This Policy Is For You?

Long-term care insurance claims make sense as you’ll be safeguarding against very high potential costs in the future.

If you have to live in a nursing home or an assisted living facility in the future, the burden may be too heavy to bear for you and your family.

Do you have more questions about long-term care insurance claims?

Are you wondering if it’s right for you?

Get in touch with us, and we’ll help you make that decision.