Long-term care insurance can be a valuable asset for people who are saving for retirement, have assets like a home, a vacation place, rental properties, and other assets. That’s because before Medicaid will begin paying for any type of long-term care, most commonly nursing home support, an individual must use up all of their basic assets.
By carrying a long-term care insurance policy, an individual or couple can be covered in the event they require some type of long-term care in the future.
Does this mean they will need long-term care?
No. A person could be in perfect health in their mid-to-late 50’s, have no family history of serious illnesses or diseases, and assume they will live out their life active to the end, but that’s not always going to be the case. Still, even if they never actually need long-term care, this insurance policy protects them in the event they do.
There could be a number of reasons to require long-term care, including an unexpected medical emergency, major surgery, accidents that result in massive injuries requiring months and months of physical therapy and rehab.
So, when you look for a long-term care insurance policy, what type of long-term care is this going to pay for? It’s an important and common question people ask.
Below are just four types of long-term care these policies may cover.
The cost of assisted living continues to increase, but so too does the quality of life at these facilities. Not all facilities are the same, but some have fine dining establishments, great entertainment options, activities, transportation, and luxurious rooms.
A long-term care insurance policy will likely cover at least some part of the stay at assisted living.
More seniors preferred to remain at home, aging in place, than to be in a facility. Professional home care agencies offer great experience, compassionate caregivers, and wonderful support. A good long-term care insurance policy should cover some of these expenses.
Not many people want to be in a nursing home, but if that need arises, and if it goes on for months or even years, that can be an incredible expense. For example, in Alaska the average cost of a nursing home for one year is $325,000 and up.
Just think about how quickly that could deplete your retirement investments, savings, or equity in your house if you had to take out a reverse mortgage to pay for it.
In some specific situations, family caregivers could be reimbursed for the support they offer to a spouse, aging parent, or even a disabled adult child. Check with the insurance provider to see what types of long-term care will actually be covered before you commit.