Does Long-Term Care Insurance Pay for In-Home Care?
Long-term care (LTC) insurance can be a significant financial asset for older adults. It can protect individuals and their families from the often unmanageable costs of long-term care in senior living communities and nursing homes. For those who can continue living at home but need in-home nursing care or household assistance, LTC insurance—depending on the policy—may also help with those costs.
What Is Long-Term Care Insurance?
Long-term care insurance is designed to cover the costs of care that are not typically covered by regular health insurance, Medicare, or Medicaid. Its main purpose is to help pay for services associated with daily living assistance and medical care. LTC insurance policies can help patients manage the costs of in-home care, allowing them to live in their own homes for as long as possible.
Long-term care insurance policies can vary widely, but they may cover the following expenses for people who are living at home:
- Home care and companion care: Assistance with daily living activities such as bathing, dressing, and preparing meals.
- Home health care: Medical care provided in the home by licensed professionals.
- Community services: Adult day care and similar services.
Here’s how these services are typically covered:
Home care and companionship: These services focus on nonmedical support, such as help with housekeeping, cooking, personal care, and even companionship. LTC insurance policies with this coverage generally cover the cost of caregivers who come to the home to assist with these daily living activities.
Home health care: This is more specialized medical care, which might include nursing services, physical therapy, or speech therapy. These services are usually provided by licensed health professionals prescribed by a doctor, and they are often covered by long-term care insurance if they are part of a certified home health care program.
Choosing the Right Policy
When selecting a long-term care insurance policy, consider the following factors:
Benefits payout: How much will the policy pay per day for in-home care? Is there a maximum limit per year or over the lifetime of the policy?
Eligibility requirements (also called “benefit triggers”): Understand what conditions or situations must be met to start receiving benefits. This often includes needing help with a certain number of activities of daily living (ADL), such as bathing and grooming, or cognitive impairment.
Waiting period: Most LTC insurance policies have a waiting period (often called an elimination period) during which the insured must pay for their own care before the insurance kicks in.
The American Association for Long-Term Care Insurance explains, “Does your policy allow you to start collecting benefits on the day you begin receiving assistance, or are you subject to a waiting period of anywhere from 30 to 120 days? It is important to ask these questions and get advice from your broker when deciding which policy is best for you.”
As With Anything Else, Shop Around
Do some research to determine whether you are eligible for LTC insurance, what types of coverage are available, and what the insurance costs. If you already work with an insurance company, find out if it offers LTC coverage. Another good place to start is your state insurance commissioner or department. Find yours by using the drop-down menu on the National Association of Insurance Commissioners website.
You can find additional information on these websites:
- AARP – Understanding Long-Term Care Insurance
- Administration for Community Living – What Is Long-Term Care Insurance?
- American Association for Long-Term Care Insurance
How Right at Home Can Help
Planning for the aging journey is imperative. Right at Home exists to help families navigate this process and ensure the safety of their aging loved ones at home. Our caregivers are screened, supervised, and trained to provide a wide range of services, including companionship, homemaking, and personal care such as assisting with movement and hygiene. To find out more, contact your local Right at Home office and ask for a FREE care consultation today.
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