What Does LTC Pay For
(Read on to find out)
Written by
Jessica Huneck is an insurance writer from TrustedChoice.com. She began her writing career in 2011 and has since earned herself a bachelor's degree in English writing.
Thinking about getting a long-term care insurance policy, but not too sure what it would even pay for? Have no fear, that’s exactly what is covered in this article.
Most don’t think too much about getting older and needing care for the things that can be done independently now. The key to good planning is taking the time to think about these scenarios and speaking with your local independent insurance agent.
What Exactly Is Long-Term Care Insurance?
Simply put, long-term care insurance is an insurance product that helps pay for long-term care expenses. These are expenses that are generally not covered by other insurance products like Medicaid, Medicare or health insurance.
Knowing the basic definition is all fine and dandy, however, let’s chat about some more specifics that will make you a long-term care pro.
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What Does Long-Term Care Insurance Cover?
Essentially, a long-term care insurance policy will reimburse you for any activities that you may need assistance with to live day-to-day. Some examples of this are:
- Bathing
- Dressing
- Eating
- Transferring (transferring in and out of bed)
- Toileting (getting off and on the toilet)
In long-term care insurance, you are preselecting the daily limits that will pay out for your care. In addition to selecting daily payout limits, you are also selecting from a range of care options that you think you will need.
This task can be daunting and may feel a bit like trying to predict the future. Unless you have a crystal ball somewhere in the attic, you might want to consider good counsel. This leads us into our next section on reasons to choose a reputable independent agent.
What Does Long-Term Care Insurance Not Cover?
Long-term care insurance is not going to cover things like if you get hurt on the job, that's covered under your employer's workers' compensation policy. It will also not cover if you have to be out of work for a disability, whether that is long-term or short-term, that is covered by a different policy called disability income insurance.
However, a long-term policy may cover assistance for those who are independently living with a disability and need some sort of long-term care assistance.
Reasons Why You Need a Knowledgeable Independent Insurance Agent:
There are so many reasons why, but let’s start with probably the most important one, because your future literally depends on it. This is about having enough money when you need it most.
When you get to the point in your life that you need help getting out of bed, the very last thing you should be worried about is if you have enough money to pay for the care.
A good, no, the best, independent insurance agent will present the risks of the future with the products to cover them and options around them. An independent agent should show different coverage benefits with an assortment of carriers, because that’s one of their selling points.
When you work with an independent agent, part of their draw is options. Can you say choices? Most independent agents work with dozens and sometimes hundreds of different carriers, all of which give you the most coverage for the best price.
A good independent agent is more well-versed and has extensive knowledge of the different lines of insurance they represent. It’s not hard to tell a good independent agent, they will be the ones advising you, returning your phone calls, presenting you with options, and explaining why you need them.
They genuinely care about your well-being. Why shouldn’t they, you’re pretty awesome.
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Just How Much Will This Cost and What Benefits Do You Have To Choose From?
If you had a dollar for every time someone said, “well, it depends,” then you'd have enough money to pay for your long-term care policy. The answer to the much-asked question of how much does a long-term care policy actually cost is, well, it depends.
You were hoping for something a little more cut-and-dred, but that’s just not how the dice are rolling for this question, folks. Let's explain more about what goes into determining the cost of your long-term care policy.
The cost depends, not just on one item, but on multiple different factors that tie together in a nice little package that is called your premium. Some of these factors are as follows:
- Your age when you purchase your long-term care policy
- The maximum number of days or years that your long-term care policy will pay out
- The maximum amount allowed per day of coverage for your long-term care policy
- The lifetime maximum amount you have for your long-term care policy (this is calculated by multiplying the maximum amount per day by the number of days)
- Any optional benefits you may choose, including those that may increase with inflation
See not so cut-and-dried. Every human is different, with different opinions and what they deem important to them. This makes the whole ballpark figure literally as vast as a ball park.
Speaking of ballpark figures, now that is a question that's been asked more times in the long-term care world than any other. For all the reasons listed above, you can see why that is so hard to give.
A good independent agent knows that while price is important, no two people are the same. And as such, this needs to be carefully considered when it comes to a long-term care policy.
Does Long-Term Care Insurance Cover Assisted Living and Independent Living?
The options are many when it comes to long-term care. Some policies cover assisted-living care and even independent care.
- Nursing home care: Most long-term care policies will provide coverage for you to receive care in a nursing home, should the need arise.
- In-home care: Like the idea of staying in your own home to receive care? There are a lot of long-term care policies that will pay out for someone to come to you.
- Respite care: This care provides a break, so to speak, for the family caregiver and it can be covered by long-term insurance in some policies.
- Hospice care: A lot of long-term care policies will provide coverage for hospice care, which is care for the terminally or critically ill.
- Alzheimer's facility care: There are specific centers for Alzheimer's patients, and this coverage is either included in, or can be added to, your long-term care policy.
- Assisted living care: This is the type of care where you are semi-independent, still able to live on your own for the most part but need someone to check in and provide care. There are long-term policies that will cover this as well, and it's a good coverage to have.
- Independent living care: This is care for those with disabilities who live on their own but need care similar to assisted living care. A good long-term care policy will also have coverage for this.
All those coverages can be available in your long-term care policy. Speak with your independent insurance agent to make sure you've got what you need.
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Does Long-Term Care Coverage Vary from State to State?
What about the state you live in, does it matter? No, not really. The policy coverages follow the carrier that provides them, and while different carriers reside in different states, that's really the only difference.
Where Are All These Independent Insurance Agents and How Can You Find One?
You’ve come to the right place. There are independent insurance agents in almost every city and every state across the country. TrustedChoice.com is one of the leading resources for you and your independent insurance agent needs.