3 Things to Know About Long-Term Care Insurance

3 Things to Know About Long-Term Care Insurance

The term Long-Term Care refers to the type of services offered to seniors in need of prolonged help with everyday activities usually following a medical event or illness such a heart attack, stroke or diabetes. Long-term care requires a lot of upfront preparation, resources and often money.

One way to pay for long-term care is with Long-Term Care Insurance (LTCI) which often differs from medical insurance and usually comes with a high premium. LTCI and the nuances of LTCI coverage can be difficult to understand, especially for seniors with Alzheimer’s, Dementia or other cognitive ailments. However, there are great benefits to having an LTCI policy. So, it’s important that families do their best to learn about it and take the time to decide the best path of payment for their loved one’s long-term care.  

The team at Open Arms Solutions knows a lot about the long-term care industry including how to navigate LTCI and can help you better understand all the ways to leverage your loved ones’ benefits.

Read on for 3 Things to Know About Long-Term Care Insurance.

1. How to decide if LTCI is right for you or a loved one
   When it comes to making a decision on whether or not to purchase LTCI, you have to factor in various aspects of you or your loved one’s life including age, life expectancy, general health, income and more. The best age to purchase LTCI is typically between 60-65 years old but that can differ from person to person. If in your family history people tend to live a long time, you’ll likely need LTCI, however, the younger you purchase a policy the less expensive it tends to be i.e. a lower premium. Women are known to live longer than men, so often women are more likely to need LTCI. And when it comes to income and wealth, if you have a lot of assets, you may want to purchase LTCI so you don’t have to compromise those assets. However, if you have a lot of money in savings or retirement, you may be able to cover the costs without the LTCI. Overall, there are many considerations when making a choice to purchase LTCI.
2. How to purchase LTCI
   You can typically purchase LTCI policies using a few different avenues. First, if you or your loved one are employed, you can see if your employer offers LTCI within their benefits package. This would be referred to as a group policy. Employer group plans sometimes have additional benefits based on the level of underwriting—this can differ from individual plans which may be more stringent. If you decide to purchase an LTCI individual policy, you’ll likely need to work with an insurance agent who can explain the policy options and enroll you. Or, if you have an organization or association that you are a member of, often you can access benefits through your membership benefits. This option most likely will have similar offerings as an individual plan but perhaps with a lower cost or premium.
3. How do pre-existing conditions impact coverage?
   Depending on the age you begin to consider LTCI for yourself or a loved one, you may or may not have already been diagnosed with an illness. Sometimes pre-existing conditions can impact your coverage or the timing of benefits that can be paid out to you. According to the Illinois Department of Insurance, “A long-term care insurance policy usually defines a pre-existing condition as one for which you received medical advice or treatment or had symptoms within a certain period before you applied for the policy.” Therefore, if you have a pre-existing condition, it’s important to find out what parameters are in place and when and how you would be able to receive benefits once you begin long-term care if/when you purchase LTCI.