Long Term Care Insurance Dos and Don'ts

Deciding to purchase long term care insurance can be a difficult decision. Whether it's evaluating your insurance options or understanding how it works, it's always helpful to do your research ahead of time.

Why Consider Long Term Care Insurance?

As we grow older, there is a significant chance we may need long term care. And while Medicare will cover short nursing stays and limited amounts of home health care, it doesn't cover custodial care. Custodial care, or the daily care many aging adults need, must be paid for out of pocket unless they have long term care insurance. 

Long term care insurance can also open more doors for choosing a higher quality and/or a more specific type of care. While purchasing this type of insurance is a wise decision to preserve savings, the National Association of Insurance Commissions advises individuals to spend a maximum of 5% of their income on their policy. 

How the Insurance Works

The first step to getting long term care insurance is filling out an application and answering health care questions. If you are approved for coverage and the policy is issued, you will begin paying premiums. 

Then, when you need care and want to make a claim, the insurance company will review your medical documents. Additionally, they may send a nurse to do an evaluation before approving the claim. 

Often, you will need to pay out of pocket when you start long term care services. This amount of time can range from 30 to 90 days and is known as the "elimination period." After that period, you will be reimbursed for future care.

5 Tips When Looking for Long Term Care

Deciding to get long term care insurance is an important and smart step, but you may not know where to start. Preparing for the future can be easier if you know what to do and what to avoid.

Be Familiar with Long Term Care 

The key to any search process is to know exactly what you're looking for, including your price range, your ideal plan, etc. Educating yourself on long term care and the options available to you can help avoid confusion or unwanted outcomes.

Buy With Your Loved One

Often, companies provide discounts to couples who are married or living together. Opportunities like this are worth looking into to ensure you receive the best financial rate.

Don't Wait Too Long

Many aspects of long term care are based on age. Buy before your birthday. Do not wait for your health to decline before applying because you can be declined. Coverage also gets more expensive the older you are and isn’t available beyond certain age limits.  It's best to prepare in advance, avoiding complications later.

Check for a Possible Tax Write-Off

Business owners or people with high healthcare costs may have tax-deductible benefits that they are not aware of. Make sure to talk to someone like a long term care insurance agent or a CPA if you believe you may fall under this category.

Seek Professional Advice

The best way to pick long term care insurance that fits your needs is to work with someone who is trained to do just that. An experienced professional that has access to multiple companies and products is important so you know all your options. Having a plan when you need it will ease stress in the future.

Long Term Care at Gateway Living

At Gateway Living, we offer 24-hour long term care at a beautiful residential facility. We also have dedicated memory care units in each of our houses to support residents with Alzheimer's and dementia. To learn more about our facility, explore our website or book a tour by giving us a call.