Medicaid and Medicare help aging adults afford medications, but the coverage doesn’t cover extended sickness or disability. That’s where long-term care insurance takes precedence.
The policy helps its holders pay for their care needs long-term such as nursing home care. Below is an explanation of how this insurance works and whether or not it’s something you and your family should consider.
What is Long-term Care Insurance?
Long-term care insurance assists its policyholder in paying for different services, most of which don’t include medical care. Coverages such as this may consist of nursing or in-home care.
The policy pays for care services for holders with chronic illnesses, injury, or disabilities. It also provides coverage for individuals who are aging.
While other coverage pays only for medical expenses, long-term care insurance covers personal and custodial care costs as well.
When Should you Consider Long-term Care Insurance?
While making plans for your finances, you should consider adding the insurance costs. If you’re close to retirement age, it’s even more critical that you do so.
You don’t want to wait too long to get coverage, though, because it may be too late. However, if you already have a chronic illness and disability coverages, you may not qualify.
According to the United States Department of Health and Human Services, an adult that’s approaching the age of 65 will need to have some form of insurance. While it doesn’t apply to everyone, at least 20% will need coverage for more than five years.
Long-term care can become a substantial financial burden in the long run. Most insurance coverage doesn’t cover long-term care. Medicare doesn’t cover custodial care as nursing homes are classified.
If you don’t have long-term care insurance, you may want to get one soon.
What does It Cover?
Most long-term policies are comprehensive, meaning they cover adult daycare, at-home care, nursing home care, and assisted living. At-home care may cover the cost of a professional nurse, occupational therapist, or rehabilitation.
Also, long-term care can cover hospice care short-term for terminally ill persons. A hospice objective is to aid with managing pain and providing emotional and physical assistance to all parties. These tasks may include brushing teeth and bathing.
The policy allows beneficiaries to get care at any hospice facility or nursing home and the option of staying at home. However, because hospice care isn’t considered long-term you can receive aid through Medicare.
Long-term insurance also covers temporary and respite care costs. These policies also cover the costs for a person who has to take time off to take care of the sick.
Respite care provides for caregivers from 14 to 21 days. They can do care at a nursing home, their home, or an adult daytime facility.
It’s highly like you’ll need long-term insurance, but you must also consider how you’ll go about paying it. You should talk to a financial advisor if you don’t know enough about long-term insurance. They’ll help you make the best decision about life after retirement.