What is long-term care insurance and do I need it?
Planning for your future is a complicated business simply because we have little idea what the future holds. While you may have a plan for when you hope to retire and have been saving to cover your costs of living after that date, it is impossible to know what may happen in terms of your health, longevity, and the cost of care you may eventually need.
One option for more peace-of-mind about covering costs associated with care needs as you age is long-term care insurance, a type of coverage that assists with costs associated with services and supports you may need as you age.
As you plan for your future, you may wonder whether long-term care insurance is right for you. Read on for information and tips to consider when exploring the option of long-term care insurance:
How does long-term care insurance work?
Long-term care insurance (LTCI) is a policy that covers personal and custodial care services and supports you may need as you age. This type of coverage can be applied to a number of different settings where care may take place, such as in the home or at an assisted-living facility.
LTCI is designed to cover services not included in traditional health insurance policies, Medicare, or Medicaid. With this type of coverage, a daily coverage limit is set and policyholders are reimbursed for care costs up to this amount.
The cost of a LTCI policy depends on a number of factors including how old you are when you purchase the policy, the daily coverage limit, the pre-determined maximum length of coverage, and any optional benefits you may add on.
When you purchase a policy, it is important to note that the insurance company may raise the cost of your premium based on inflation or other factors. It is advisable to ask for a premium rate history before you buy.
What does long-term care insurance cover?
The types of services covered under an LTCI policy are those that support the Activities of Daily Living (ADL’s) like bathing, dressing, eating, toileting, etc. When you purchase a policy, you can choose from a range of care benefits that will allow you to access the care you need when you need it.
Care can take place in the home or in an assisted living facility, memory care facility, adult day center, etc. In the home, LTCI may cover services like skilled nursing, therapy, and even housekeeping and meal preparation if you are physically or mentally unable to complete these tasks yourself.
Should I purchase a long-term care insurance policy?
Whether or not you should purchase LTCI coverage depends on a number of factors. It is important to do your research and understand your options before purchasing a policy.
You may be eligible for a group long-term care policy through your employer. Ask your HR representative whether this applies to you.
LTCI may not be available to you if you have certain pre-existing conditions or if you already receive assistance with Activities of Daily Living. A prerequisite to many policies will be a medical examination.
The best way to know whether LTCI is right for you is to have a detailed and well-thought-out plan for your future. That way, you will be able to navigate your options and make choices based on your own goals, needs, and wants.
Here at Margerie Law, I love helping my clients feel confident in planning for their future. While I am not an insurance agent, I am happy to help you navigate the decision-making process and can recommend additional resources. Are you looking for a caring and experienced estate planning attorney in Milwaukee or the surrounding area? Give me a call to schedule a consultation today.