Updated: Dec 16, 2020
Have you heard of Long Term Care Insurance and not sure if it's worth paying for this type of policy? Statistics show that the overwhelming majority of retirees over age 70 will require long term care services at some point during their retirement.
The consideration to obtain long term care coverage has to be made at a younger age as you will not qualify for the coverage once actual care is required.
Paying out of pocket for in-home care can vary greatly in cost depending on the level of care required.
Basic care of about 20 hours per week could cost around $20,000 per year, while someone with dementia or other serious health issues could require 24/7 care that can easily cost up to $150,000 per year.
Since we don’t get to pick our future health conditions, and most of us would prefer to avoid living in a facility, it’s absolutely worth looking into a long term care insurance policy and seeing if it can make sense for your situation.
A licensed long term care agent and / or your financial advisor should be able to do a proper assessment of your situation and help you make this determination.
The Basics of LTC
Long term care insurance assists in paying for home care that is needed to perform the 6 ADLs, or activities of daily living. This can apply to home care needed after a serious accident, a surgery, the progression of a disease, or just general age related decline.
Home health aides are typically the type of health care professional that will provide someone with the require assistance to perform the activities of daily living.
In general, these types of services are not covered by health insurance, Medicare or Medicaid. The above mentioned will typically cover services that require a registered nurse to perform in-home nurse check-ups that were required per a physician’s order.
How to Qualify for Long Term Care Coverage and How to Apply
Long Term Care Insurance is underwritten in a similar process to that of health and life insurance in that the cost will be determined based off your age, health history, and requested coverage amounts.
It can be purchased from an insurance company directly, through an agent, or through employers who offer group discounts to employees.
If you are searching for coverage options, it is advised by the American Association for Long-Term Care Insurance is to work with an experienced Long-term care insurance agent who can sell products from at least three carriers. This way, you can have some comparisons to decide which is the best fit for you.
It is important to keep in mind that the longer you wait to apply for this insurance, the higher the cost of coverage reaches and that certain medical conditions may disqualify your eligibility.
40% of those over 70 who apply are denied coverage, as opposed to around 7% in their fifties.
When applying for LTC, many insurance carriers will conduct an interview through the phone to assess your health and will request a copy of your official medical records to review. All of which will be done at no cost to you.
For some, a para-med exam may be ordered where the insurance company will send a nurse to take vitals and do a very basic physical and cognitive assessment.
The whole process generally takes 4-6 weeks depending on how long it takes to receive and review your individual medical records.
Since cognitive impairments such as dementia and Alzheimer’s can be the costliest of diseases that require constant in-home care, you should seriously consider long term care insurance if you have any family history of these conditions.
Typically by the time we get a call as a home health agency from someone looking for care, it’s to late to apply.
We do however work with a licensed long term care agent that can review current policy coverages, assist with enacting benefits, and also help those looking for long term care insurance compare carrier rates.
If you have any additional questions regarding long term care insurance or home health care services, we are here! We service Boca Raton and the surround Palm Beach County area.
Hiring professionals from Unified Pledge comes with the following advantages:
Level II FBI background checks of all staff
Driving history checks
Companions, health aides, LPNs are our direct employees and not independent contractors
Constant communication to patients, family, and care team
Registered Nurse supervision is ongoing with every care plan
Contact us today for a free consultation by Supervisory Nurse at 561-910-8770.