Long-Term Care Insurance

Many people are unable to rely on or do not want to burden family members with caring for them. Long-term care (LTC) insurance provides coverage for nursing-home care, home-health care, and personal or adult daycare for individuals age 65 or older and those who have a chronic or disabling condition and need constant supervision. Without insurance, long-term care expenses could quickly deplete the savings and assets of an individual and/or their family.

There are three main components to a Long-Term Care policy.

1. Daily or Monthly Benefit Amount: the specified dollar amount your policy will pay per day or per month for care.
2. Elimination Period: similar to a deductible, this is the number of days you pay out of pocket before your policy kicks in and pays the specified benefit amount.
3. Benefit Period: the length of time during which a policyholder or their dependents may file and receive payment for a covered event. Some of the more common benefit periods are two-year, three-year, five-year, and unlimited or lifetime benefit periods.

What could trigger benefits to be paid?

1. Needing help with ADLs (Activities of Daily Living). Typically a person would need to have help completing a minimum of two or three ADLs to trigger payments under a long-term care policy.
   • Ambulating (walking or getting around)
   • Feeding
   • Bathing
   • Dressing and grooming
   • Using the toilet
   • Continence management
   • Transferring (getting in/out of bed or a chair)
2. Cognitive impairment: This could be something such as Alzheimer’s or dementia. Some policies will not pay benefits for cognitive impairment if the individual can still perform ADLs on their own.
3. Doctor certification of medical necessity: Some plans will not pay benefits without a doctor certifying that long-term care is medically necessary.

Some companies offer incentives for both spouses to purchase coverage. This can be a premium discount or a “shared care” policy. A “shared care” policy allows the purchase of one policy for both spouses to share the same coverage limits.

Many experts suggest you begin shopping for long-term care insurance between the ages of 45 and 55, as part of an overall retirement plan to protect assets from the high costs and burdens of extended healthcare. The younger and healthier you are when you purchase LTC, the less the annual premium will be. While premiums can cost less if you buy a policy at a younger age, you may be paying for coverage for more years before you are likely to need it. However, if you wait until your health is already deteriorating, you may be denied coverage. So, weigh your options carefully. Thoroughly compare the benefits to determine which policy will best meet your needs.

If you are looking for an honest and trustworthy agent to help you with your life insurance, annuities or long-term care policies, you can count on Southern Iowa Insurance Services. Abbigail, April and Brittany are ready to help you learn about the many options available so you can make an educated decision on the type of policy that YOU need. Southern Iowa Insurance Services has access to a wide variety of companies so we are sure to find the best fit for you!