Those of us who consider ourselves healthy and/or robust will likely have a difficult time thinking of being not able to accomplish such basic tasks as taking a shower or fixing a meal for ourselves. There will always be a fortunate number who will never require help in performing basic “activities of daily living,” often abbreviated as “ADL.” There will always be a substantial number of people who will end up being in need of daily care as a result of some injury or illness. Most long term insurance plans are tailored for folks who are planning ahead for the myriad of potential physical and/or mental challenges of growing old. However, these plans are equally relevant for younger people who wish to be prepared should long term care become necessary as a consequence of some unforeseen illness or accident.
Again, this kind of coverage is designed to take care of people when they are no longer able to do so on their own. During these modern times, we all tend to live longer and this means that many elderly and/or ill people will need help in their final years. This type of assistance, whether it might be in-home care or via an assisted-living facility, can be very costly and also add up fast to overwhelming costs. Long-term care insurance is what can help to mitigate these costs.
The elderly who can’t perform ADLs due to illnesses, cognitive issues due to illnesses such as Alzheimer’s disease or those who have prolonged disability challenges are all candidates for long term care services. Policy terms do vary, but there is a long-term care policy out there for those who need support for both stay-in or assisted living facilities, nursing facilities or even for a person to visit the home for service. This is known as “in-home care.”
How it Functions
A person can obtain this kind of coverage as part of a standalone policy or in the form of a policy add-on (or “rider”) for an existing life insurance policy, for instance. This coverage is also offered in many cases as part of an employee benefits package.
This kind of coverage can payout for many kinds of long term care situations should one be faced with a chronic illness or become disabled in one way or another. Again, this coverage can come in the form of a nursing home or assisted living care or even provided in a policyholder’s own home.
Kinds of Coverage
Insurance companies will provide compensation that provides anywhere between half and the entire costs of extended care. Below are some of the other possible coverage features that are usually considered when one is in the market for good long term care insurance:
The Benefit’s Length of Time – One can opt for how long care will be provided when the coverage is first purchased. One can opt for anywhere from 2 to 10 years of care provision.
Waiting Period– The vast majority of policies will only be able to pay out until after the first month of coverage is over or for a longer waiting period. Options are usually 30-, 60-, 90-, or 180-day time periods.
Automatic Inflation Correction- The earlier a policy is obtained, the longer it can accrue interest, which can lead to bigger payouts.
Shared Couple Benefit– One can choose to include a spouse in the sharing of benefits.
More Reasons to Obtain Coverage
In short, obtaining this coverage can mean unequaled peace of mind in knowing that one’s loved ones will not be burdened in taking care of a policyholder in their final years all on their own and, of course, having to pay out-of-pocket for quality care. And, as a big motivation for those considering this coverage, it is actually relatively reasonable for even those in more modest income levels.