By Shelby Thompson, Senior Advisor at Concierge Care Advisors
The Importance of Long-Term Care Insurance: Plan Ahead for Peace of Mind
If you or your loved one does not have a long-term care (LTC) insurance policy, it’s essential to understand that these policies must be purchased well in advance—years before retirement age. Unlike Medicare or Medicaid, LTC insurance requires policyholders to pay monthly premiums over several years or even decades to access benefits when needed.
Most policies cover a range of services, including:
- Assisted living and memory care costs
- Adult family home rent and care
- Private pay nursing facility and rehab expenses
- In-home caregiving support
Policies vary; some offer a bucket of money to draw from, while others provide coverage for a limited number of years. Lifetime coverage is rarely available, so planning ahead is critical.
How LTC Insurance Affects Senior Care Options
Our Senior Advisors love working with clients who have a long-term care policy because it expands their options. Many seniors may not have substantial savings, assets, or a high monthly income to rely on. With an LTC policy, seniors can offset Social Security income, making it easier to transition into a retirement community, assisted living, or other care facilities.
The Elimination Period: What to Know
One important aspect of LTC insurance is the elimination period, typically lasting 90 days. During this time, the policyholder or their family must pay all care costs out of pocket before the policy benefits activate.
Many seniors encounter challenges when they wait too long to implement their policy, finding themselves in a crisis without enough resources to cover these upfront costs.
Our advice: Take advantage of the in-home care benefit early by paying for part-time caregiving while the senior is still safe at home. This strategy helps meet the elimination period requirements early, so it won’t become a barrier when greater care needs arise.
Key Benefits of Long-Term Care Insurance
Having a long-term care policy provides several advantages:
- Financial security: Senior living can be expensive; LTC insurance serves as a financial safety net for care costs.
- Reduced burden on family: Families may not need to provide care themselves or pay for services out of pocket.
- Choice and control: Seniors gain more freedom to choose where and how they receive care.
- Peace of mind: Knowing a policy is in place alleviates the stress of needing long-term care.
We Are Here to Help
Unsure what your LTC policy covers? Let Concierge Care Advisors take a look! Contact us today for a free consultation, and we’ll help you navigate your benefits and find the best care options for your loved one.
