When Does a Long-Term Care Insurance Policy Claim Start Paying?

By Steve Elliott | October 25, 2023 | Comments Off on When Does a Long-Term Care Insurance Policy Claim Start Paying?

Having a long-term care insurance policy and making long-term care insurance premiums are great for financial planning. It should be part of any retirement planning or fund. Unfortunately, not many Americans have even heard about such insurance. In fact, most of us don’t even think we will need long-term care in the future, even if we have a grandparent, parent, or other friend or relative who has gone through it themselves.

Long-Term Care Insurance Premiums Carlsbad CA - When Does a Long-Term Care Insurance Policy Claim Start Paying?

Long-Term Care Insurance Premiums Carlsbad CA – When Does a Long-Term Care Insurance Policy Claim Start Paying?

“It won’t happen to me,” we think. It’s that same mentality many of us have as teenagers when we first start driving. Bad things aren’t going to happen to us. Yet, they happen to somebody all the time, many times a day.

The same holds true when you’re talking about long-term care. It may not be a matter of if you or your spouse need some type of long-term care in the future, but more a matter of when. The older you live to be, the more likely you will require some type of long-term care.

So, how long do you have to wait for the policy to start paying?

That is a great question and an important one. Many people incorrectly assume that their primary health insurance coverage or Medicaid is going to pay for long-term care. Most insurance policies only cover short-term care, which amounts to just a couple of weeks, maybe three or four at most. Beyond that, it is considered long-term care and you are responsible for it.

Medicaid isn’t going to cover these expenses in most states until you have exhausted all of your available savings and assets, which often include the equity you have in a home.

Now, if you have a long-term care insurance policy, there will be a ‘waiting period’ before it starts to kick in. This could be several weeks or a couple of months, sometimes longer. It all depends on the insurance company in the policy itself.

Think of it like a deductible for your automobile insurance.

If you have automobile insurance, you understand about deductibles. The lower the deductible, meaning the amount you would have to pay out-of-pocket before your insurance policy takes over with the expenses in an accident, the more likely policy cost increases. The higher the deductible, meaning the more you will pay out of your own pocket first, the lower the policy rate.

The same basic concept will apply to long-term care insurance policies. Some policies have a 90-day waiting period before the policy begins to take over. That means, if your primary insurance covers weeks of care, you’re looking about eight weeks that you would have to cover out-of-pocket.

Does that not seem fair?

Consider having to pay all of the long-term care expenses yourself. It could be $100,000 a year, $200,000 a year, or even $300,000 a year, depending on where you live and the type of elder care needed.

If you want to shorten the waiting period before the policy kicks in, speak to a licensed and experienced broker and find out what options are available, but no matter what you do, start a long-term care insurance policy as part of your retirement portfolio sooner rather than later.

If you or a loved one are considering Long-Term Care Insurance Premiums in Carlsbad 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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