Long term care insurance picks up where many other policies leave off. Policies like those offered by Medicare are not intended for long term care and will often have a set period of time at which their coverage ends or the beneficiary’s bills will significantly increase. Understanding the unique characteristics of long term care insurance is important in making an informed decision about whether or not you should enroll.
Why choose long term care?
If you’re anticipating being admitted to long term care, whether that be because of a health issue or aging, consider an insurance policy that aligns with that. For some, insurance is a proactive measure and will not need to be used. For others, insurance significantly reduces medical bills and provides extreme financial relief.
How does it work?
To apply for a long term care policy, you must fill out an application and answer health questions. The insurer may also want to see your medical records. After you have been approved, you can choose the amount of coverage you would like to have and then begin paying the premium. The cost of the policy mostly depends on your age, health, gender, marital status, the amount of coverage you need, and the insurance company you purchase the policy from.
For most policies, you are eligible for the benefits if you cannot do at least two of the six activities of daily living on your own. The activities of daily living include:
- Getting dressed
- Caring for incontinence
- Being able to use the bathroom facilities by yourself
- Transferring, or being able to get in and out of bed or a chair
You can also be eligible for benefits if you have dementia or a cognitive impairment.
If you need care and would like to make a claim, the insurer will review your medical documents with the possibility of sending a nurse to evaluate your situation.