Long Term Care Insurance covers what all the other health insurances don’t cover, such as care in your home, assisted living and nursing home facilities.
What is Long Term Care: Long Term Care insurance is used when a patient needs care for more than 90 days. Long term care can be a result from an accident, physical illness or cognitive impairment.
Long-Term Care Coverage:
Policies provide comprehensive long term care coverage for home care, assisted living and nursing facilities. Benefits are paid using one of three different methods:
- Expense-incurred method
- Indemnity method
- Disability method (cash)
Daily or Monthly Benefits: $100-$500 day or $3000-$15,000 monthly
Benefit Periods: Insured person may choose from 2, 3, 4, 5, 6, 10 years or lifetime benefits. This period determines your pool of benefits.
- For a 4 year plan at $6000/month = $288,000
- For a 4 year plan at $200/day = $292,000
Elimination Periods (sometimes called a deductible or a waiting period): This means benefits can start 0, 20, 30, 60, 90 or 100 days after you start using long-term care or become disabled.
- 5% simple
- 5% compound
- no inflation
Inflation increases the pool of money each year. This is to keep up with the rising costs of long-term care.
Options for Funding Long Term Care Insurance
- Continuous Pay for Lifetime
- 10-pay: Pay 10 years and then paid up for life
- Return or Premium: at death, premiums paid for the long term care policy can be fully or partially refunded)
- Pay to age 65
What Triggers Long Term Care Insurance Benefits
2 out of 6 Activities of Daily Living
- Cognitive Impairment
About the Author:
Shelly Kapfhammer, is a Long Term Care Specialist for the Tax & Financial Group in Newport Beach, California. Shelly provides training and education to Financial Advisors, Life Insurance Professionals, Property and Casualty Agents, CPA's and Attorneys on the importance of Long Term Care in their portfolio. She works closely with the group health market on the need for Long Term Care as a health benefit in the workplace, as well as, affinity groups and associations. Shelly also personally sells Long Term Care Insurance to the indivual and group market. Shelly has been a guest speaker on the Los Angeles radio station 99.3 KCLA.
Articles Related to Long Term Care:
- Reasons To Plan For Long Term Care Insurance
- Guide To Long Term Care Insurance
- Long Term Care Planning
- Types Long Term Care Facilities
- Major Factors That Influence the Fees For Long Term Care Facilities
- Payment Options for Long Term Care
- Can You Afford the Cost of Long Term Care?
- Senior Housing Move-in Specials and Discounts
- Who Needs Long Term Care Insurance?
- Does Long Term Care Insurance Pay For Assisted Living?
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