a family discussing long term care insurance

Long-Term Care Insurance: Planning for Your Future Health Needs

As people get older and nursing homes get more expensive, the need for long-term care insurance rises. When you figure that the average elderly person needs to qualify for Medicaid (the low-income plans) should they need more help that they can receive at home (and even that isn’t a guarantee that they’ll be able to afford the costs of their care), it’s even more obvious that a long-term care plan is required. After all, not everyone has thousands of dollars free each month to pay for their own or for their loved ones’ care. Thankfully, there’s a sensible solution to this very prevalent dilemma.

What is Long-Term Care Insurance?

Long-term care insurance is designed to fill in any shortcomings with your health insurance. For example, Medicare plans, which are designed for elderly people, have limitations on them. They’ll cover things like treatments, testing, and outpatient rehabilitation services, but don’t cover long-term nursing home or rehab stays. If you need to go to rehabilitation after an injury, you’ll receive a month or two of coverage, but that’s it. Anything longer either needs to be paid out of pocket or via a Medicaid plan, if you qualify for one.

Thankfully, if you have a long-term care plan, then you won’t have these worries. Your insurance will pay a set amount, depending on your policy, towards your care each month. This can be a lifesaver for those who can’t afford the out-of-pocket costs yet need more care than they can receive at home.

How Does Long-Term Care Insurance Work?

A long-term care insurance policy is like any other insurance policy that you have. You determine exactly what type of coverage you need, as well as how much you think you’ll need per month. Then, the insurance company determines your premiums based on things like your age, your health status, and those coverage specifics. Premiums are usually payable monthly, although you may be able to find a six-month or year-long policy that makes renewing and paying for your coverage easier.

When you need the money for an extended stay in a rehabilitation facility for, say, a broken hip, or you require nursing home or memory care, then you contact your insurance company and call in a claim. There may be a short waiting period, but the policy should kick in and cover the costs determined by you and your insurance agent when you took out the policy.

However, this insurance doesn’t work like life insurance or any other policy where you pay into it for a set period and then don’t have to anymore. If you fail to pay your long-term care insurance premiums, the policy will cease, and you won’t receive any of the money that you paid into it back.

Contact Spivey Insurance

If you need a long-term care insurance policy or need to adjust the amounts covered by your current policy, please contact Spivey Insurance. Our well-trained and knowledgeable agents will be able to answer your questions and get you set up with the best policy for your future long-term care needs.

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