Long Term Care Insurance
Long term care insurance covers services needed by those with chronic illness or disability that are unable to provide their own care for an extended period of time. This can include normal daily activities, such as eating, bathing, and moving around. Supervision due to a cognitive impairment may also be covered.
You can receive long-term care in a nursing home, assisted-living facility, or in your own home. Though older people use the most long-term care services, a young or middle-aged person who has been in an accident or suffered a debilitating illness might also need long-term care. Many people believe Medicare will provide for their long term care needs. However, Medicare has minimal to no benefits that provide long term care.
Let us help you determine what combination of long term benefits are best for you. Call us today at 540-659-2121.
What type of Policy is right for you?
Lewis Insurance Associates will work with you to select the best policy for you. Several types of long term care policies are available. The most well-known are:
- Indemnity Policy
- An indemnity policy pays up to a fixed benefit amount regardless of what you spend.
- Expense Incurred Policy
- With an expense incurred policy, you choose the benefit amount when you buy the policy and you are reimbursed for actual expenses for services received up to a fixed dollar amount per day, week, or month.
- Pooled Benefits Policy
- Some companies also offer policies with pooled benefits. This type of policy provides a total dollar amount that may be used for different types of long-term care services. There is usually a daily, weekly, or monthly dollar limit for your covered long-term care expenses.
For example, say you purchase a policy with a maximum benefit amount of $150,000 of pooled benefits. Under this policy you would have a daily benefit of $150 per day that would last for 1,000 days if you spend the maximum daily amount on care. If, however, you spend less than your daily benefit, you would receive benefits for more than 1,000 days.
How much coverage should you buy?
The amount of coverage you purchase will vary based on your needs and the cost of the services where you live. According to the U.S. Department of Health and Human Services, in Virginia in 2012 the average monthly costs of Home care services were between $3,241- $3,432, an Assisted Living Facility was $3,775, and a Nursing Home was $6,205 for a semi-private room.
Most policies include an elimination period or deductible of 60, 90 or 180 days before you would begin receiving benefits. Also, you should consider adding one of several inflation guard benefits such as an annual compounding percentage increase benefit. This will ensure your policy will keep up with the future costs of long term care.