Long-term care is insurance to help you ease the financial burden of care should you need extended time of acute care that health insurance will not cover. This is typically for caring for aging, especially in the case of chronic illnesses and/or disabilities. It might also affect people of all ages. If you are considering planning for these stages in life, below are some factors you should keep in mind: The main trigger for benefits are if you can’t perform 2 out of 5 activities of daily living like eating, dressing, bathing, transferring continence, or cognitive impairment.
- Premiums & budgets: Can you afford it now and in the future? Maybe your income can afford it now but can your retirement plan afford it?
- Look into Life Insurance plans that have a rider for Long Term Care.
- Employer provided options: Can your employer help you pay for all or some of this?
- Individual vs. joint plans: will you need to cover a spouse or just yourself?
- Beware of pre-existing conditions, this could dramatically increase costs; shop around and find the best option for you
- Covered services: nursing home, assisted living, home care, etc. Not everything you may eventually need may be covered so first analyze what you think you will need. Take into account potential family history, existing conditions, etc.
- Exclusions: some policies may exclude certain conditions, check with your agent. If your family history and own personal health history already forecast certain needs, make sure you pick a policy that includes what you will need.
- Some policies will pay the facility directly and some will pay you.
- Finally some policies can be purchased with one lump sum premium.
Are you considering long-term life care for you or a loved one? Do you have questions or are unsure of what the best plan is for you? Let Kabco Benefits guide you through this estate-planning step. Contact us today!