Long-Term Care Insurance: Meaning and How It Works

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A lot of people are not able to rely on their family members or children for support and care. This is why the purchase of long-term care insurance is important. So, when you have a policy or quote, you do not have to worry about out-of-pocket expenses.

Long-Term Care Insurance: Meaning and How It Works

However, the cost of purchasing this type of insurance is not the same. In other words, it varies based on different factors, which you will learn about later. Nonetheless, if you are interested in buying a long-term care insurance policy, you need to make sure that you meet the requirements before you proceed.

What is Long-Term Care Insurance?

Long-term care insurance, also known as LTC insurance, provides coverage for personal or adult day care, nursing home care, and home health care to policyholders. Individuals who are 65 years of age or older and have disabling or chronic conditions are eligible for this type of insurance. It also provides more flexible options, unlike Medicaid.

How Does It Work?

To get long-term care insurance, you need to apply by filling out the application form provided by the insurance company that you choose. But before that, information about your medical records will be requested by the insurer, and you can perform an interview in person or on the phone. Then, the next step is to select the amount of coverage you want.

Additionally, the amount of your coverage determines the cost of your long-term care insurance. So, you can start making premiums when your coverage has been approved and your policy has been issued. Apart from this, you are qualified for benefits if you are unable to do two out of the six activities of daily living.

These are called ADLs, and they include the following:

  •  Eating
  • Transferring from the chair to the bed and vice versa
  • Dressing
  • Bathing 
  • Toiletering 
  • Caring 

So, if you need care and assistance and want to file a claim, the insurer will check your medical documents from your doctor before approving the claim.

What Does Long Term Care Insurance Cover?

Many expenses are covered and associated with long-term care. So, if you need help, here is what your LTC insurance covers:

  • Speech therapy.
  • Adult daycare centers.
  • Nursing home care.
  • Physical therapy.
  • Home health aides.
  • Occupational therapy.
  • Hospice care.
  • Respite care.

But before you purchase any policy or quote, it is important that you check for exclusions before purchasing it.

What Does It Not Cover?

There are situations in which your LTC insurance will give you coverage or be used. They include:

  • Self-inflicted injuries.
  • Long-term care treatment outside the United States. Meanwhile, some policies offer care in the United Kingdom and Canada.
  • War-related injuries or illnesses.
  • Mental health disorders.
  • Treatment in a government facility.
  • Drug or alcohol addiction.
  • Treatment that has already been taken care of by the government.

If any of these events arise, there is no guarantee that your long-term care insurance will cover them.

Can Anyone Get LTC Insurance?

Unfortunately, not everyone can purchase this insurance policy. Here are the criteria that, if you meet them, you will not be able to get LTC insurance:

  • If you are over 80 years old or older,.
  • If you are receiving or getting long-term care services.
  • Applicants with pre-existing conditions are not qualified.
  • If you are in poor health.

On the other hand, if you have minor medical conditions, you may still qualify for long-term care insurance. But remember that you will need to answer health-related questions.

How Much Does Long Term Care Insurance Cost?

Many details influence the cost of buying long-term care insurance. So, when shopping for or looking to get long-term care insurance, here are the factors that affect the rate you pay:

  • Type of coverage
  • Age
  • Gender
  • Location
  • Insurance company
  • Smoking
  • Family history
  • Financial situation
  • Health
  • Elimination period
  • Cost of care
  • Benefit period
  • Coverage parameters

How to Get Long-Term Care Insurance

Buying or purchasing a long-term care insurance policy is not difficult. But you need to make sure that you have compared and finalized your decision to purchase a quote from the selected insurance company. Nevertheless, here are the steps you need to buy a LTC insurance quote online:

  • Find out how much coverage you need.
  • Compare the coverage options available.
  • Check out reviews of long-term insurance companies.
  • Once you have decided on what insurer or company you want to use, go to their official platform.
  • Fill out the application form.
  • The interview can happen by phone or in person.
  • Provide your medical records.
  • Enter all the necessary information before you submit.

After you do, wait for your application to be approved. Once it is, you can begin to make premium payments. You can also file a claim whenever you want.

Best Long-Term Care Insurance Providers

Finding long-term care insurance providers can be such a hassle sometimes. This is why I would like to save you time and worry. In other words, you will not have to go through the stress of searching because I have got you covered. So, here are some of the best long-term care insurance companies:

  • Thriven Financial
  • Bankers Life
  • National Guardian
  • LTC Consumer
  • Nationwide 
  • New York Life
  • GoldenCare Insurance
  • Mutual of Omaha.
  • Northwestern Mutual
  • Genworth Financial
  • Anthem 
  • State Farm

However, you need to remember that these companies have their pros and cons, as well as their unique services and coverage. So, it is important that you compare their rates and coverage plans before choosing.