What Is Long-Term Care Insurance and How, Exactly, Does It Work?

By Steve Elliott | July 26, 2023 | Comments Off on What Is Long-Term Care Insurance and How, Exactly, Does It Work?

There are plenty of questions when it comes to the elder care landscape. Of course, long-term care isn’t just for the elderly as many young adults, middle-aged adults, and even teenagers and younger children may face a point when they require long-term care. When you’re looking into long-term care insurance, though, most likely it’s for you and your spouse or legal partner as you move through your 40s and 50s. If you wait until you’re 60 or older to get a long-term care insurance quote and start a long-term care insurance policy, you could find it cost-prohibitive or difficult to even obtain a policy.

What is long-term care insurance?

Long-Term Care Insurance Quote San Diego CA - What Is Long-Term Care Insurance and How, Exactly, Does It Work?

Long-Term Care Insurance Quote San Diego CA – What Is Long-Term Care Insurance and How, Exactly, Does It Work?

This is an insurance policy that covers expenses associated with long-term care. There are many different types of long-term care, from nursing home care that can average over $7,000 a month in some places to an in-home care aide, which might cost $20 an hour or more for per diem services.

Many people have this false belief that their primary insurance or Medicaid will cover those expenses, at least when they reach official retirement age. In reality, most insurance policies do not cover long-term care. They are only covering short-term care, such as several days or a couple of weeks in a hospital or nursing home setting, at most.

As far as Medicaid is concerned, most states will only cover nursing home care only after the individual has exhausted their available savings and assets. In many cases, those assets would include the equity in a primary residence.

How does long-term care insurance work?

There are certain benefit triggers that will kick a long-term care insurance policy into play. One is an individual who is experiencing significant cognitive impairment. A second is a direct recommendation for either in-home care, nursing home care, or other assistive support from a licensed medical doctor. A third one would include requiring assistance with at least two Activities of Daily Living (ADLs) for a period of at least 90 days.

These ADLs would include going to the bathroom, eating, or moving from one place to the next (transitioning), such as going from the bed to the kitchen table, a chair in the living room to the shower, etc.

When should you get a long-term care insurance quote or start a long-term care insurance policy?

The ‘sweet spot’ for a long-term care insurance policy is in your early to mid-50s. 55 is, technically the optimal age to start a policy, but depending on your family history of health issues, your personal history of physical or health-related challenges, and other factors, you may need to look at a policy sooner rather than later.

Who decides the type of long-term care you get to use?

Be sure to look at the policy and review it carefully, but most legitimate long-term care insurance policies will allow you, the policyholder, to make the decision about the type of long-term care you rely on. If you prefer assisted living over nursing home care, so long as a facility can accommodate your needs, then the policy should cover those expenses, or at least a portion of them depending on your policy itself.

Whatever you do, don’t wait to start a long-term care insurance policy if you are already in your 50s.

If you or a loved one are considering a Long-Term Care Insurance Quote in San Diego CA, please contact Steve Elliott at Capstone Insurance for an honest discussion about your future and your options. Call today at (858) 350-3161.

Steve Elliott
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