Will Long-Term Care Insurance Cover Assisted Living?

By Steve Elliott | May 1, 2023 | Comments Off on Will Long-Term Care Insurance Cover Assisted Living?

There are often many questions people have with regard to long-term care insurance and the expense of long-term care insurance premiums. That’s because it’s not one of the more common forms of insurance out there. Most people don’t think about it until a parent or grandparent, maybe even a sibling or spouse, requires long-term care for themselves.

Long-Term Care Insurance Premiums Rancho Bernardo CA -Will Long-Term Care Insurance Cover Assisted Living?

Long-Term Care Insurance Premiums Rancho Bernardo CA -Will Long-Term Care Insurance Cover Assisted Living?

Then they might start to realize how expensive some types of long-term care can be. They also begin to realize, possibly for the first time, that their primary health insurance or Medicare or Medicaid isn’t going to cover it. In most states, Medicaid only covers one type of long-term care — nursing home care — but only after the senior has exhausted all of their available savings and assets, which often includes the value of their home.

When you’re faced with that reality, and you are in your early to mid-50s, maybe even approaching 60, you start to recognize that long-term care insurance is valuable.

What types of elder care does long-term care insurance cover?

That depends on the policy and the insurance carrier. However, that being said, most insurance policies that provide long-term care will cover the most common types of elder care out there. This would include in-home care, nursing home care, independent living, and assisted living.

Does that mean a long-term care insurance policy is going to cover the entirety of an assisted living facility, for example, for up to three years, assuming the policy was designed to cover that duration? Not necessarily. Each policy is different, and a person in their 50s may only get a certain policy that will cover up to $2,000 a month of long-term care for up to three years, for example. If the assisted living facility that person needs when they’re in their late 60s or 70s charges $5,000 a month, that long-term care policy won’t cover the entire portion.

However, if they need full-time home care, that might be enough to cover all or most of that elder care expense.

Will this inspire more people to start a long-term care insurance policy?

Not necessarily. The challenge is convincing people they might very well need some type of long-term care in the future. Today, about 70 percent of seniors in their 70s will require long-term care at some point in the future. Most of them assume it will be covered by their insurance or Medicaid. They are woefully unprepared for the reality that sets in quickly, especially at a time in their life when they can least afford to deal with it.

If you are in your 40s or 50s, understand that long-term care can financially devastate you should you or your spouse or other dependent require it in the future. A long-term care insurance policy and long-term care insurance premiums are critical components of proper financial planning for the future, especially if you have investments, equity, assets, or savings for retirement.

If you think that assisted living might be something you would consider in the future, consider a long-term care insurance policy now because it will certainly help with those expenses when they come knocking at your door.

If you or a loved one are considering Long-Term Care Insurance Premiums in Rancho Bernardo 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
Latest posts by Steve Elliott (see all)
Posted in Long-Term Care Insurance Premiums and tagged ,