Paying for assisted living need not be a source of stress and worry for you and those you love. Long-term care insurance offers many families an opportunity to cover some or all of the cost of assisted living.
If you’re unaware of this option or unclear about how it works, The Birches is here to demystify long-term care insurance for you.
You deserve to understand the available ways to pay for assisted living. We’ll unpack what you need to know about long-term care insurance before the age of 70 to decide if it's right for you.
How does long-term care insurance work?
Long-term care insurance is a type of insurance you can purchase through private companies to help cover the costs of senior living and care services.
Long-term care (LTC) insurance benefits are often used to cover some or all the costs of assisted living, memory care, skilled nursing, and respite care services. In some cases, they can also be used to pay for personal care and home health care services.
Healthy adults typically meet the qualifications to take out a long-term care insurance policy. Benefits between plans vary widely, so it’s best to do your research and clarify the coverage you want when you choose your plan.
Many appreciate this funding option because it requires a relatively small investment over time to ensure affordable care services in the future. Long-term care insurance can also be used to pay for services not typically covered by Medicare, Medicaid, or regular health insurance policies.
Think of long-term care insurance as an investment in the future health and wellness of yourself or someone you love.
Unsure what assisted living costs? At The Birches, we value transparency. That’s why you’ll find info on our assisted living cost right on our website. This information can help you plan when researching LTC insurance policies.
What to expect from long-term care insurance
Most long-term care insurance policies start paying benefits after an assessment determines the policy holder requires support with two or more activities of daily living (ADLs) or has a qualifying cognitive impairment.
In insurance parlance, this is known as your benefits trigger. Based on the assessment, your insurance company will approve a related plan of care. This document describes the needs and how they can be addressed with support services.
It’s important to note that there’s a lag between when benefits are triggered and your policy starts paying for services. This is known as your elimination period. It typically lasts between one and three months. You’ll need to cover services during this timeframe.
Once your benefits kick in, many policies cover up to a pre-set daily limit with a lifetime maximum in place.
Maximize long-term care insurance benefits
Ideally, it’s best to invest in a long-term insurance policy while you’re still relatively young to maximize your benefits. Plan premiums are usually most cost-effective when purchased by people in their 60s or younger, and most insurance policy providers will not issue a long-term care plan after the age of 85.
If you’re in this age range and are considering LTC insurance, planning ahead by researching and choosing a policy now can help you maximize your long-term care coverage benefits in the future.
As with any major purchase, it’s wise to shop around, compare plans and carriers, and get clear on the benefits and costs you’d like to balance.
You may be able to deduct some of your LTC policy’s premiums on your taxes as medical expenses. You can also opt to add inflation protection to your policy, which can help you keep pace with rising costs over time.
Statistics show the majority of adults aged 65 and over will need long-term care services at some point. Advanced planning can ensure you or a loved one receive care services when the need arises, while staying cost-conscious.
When it comes to long-term care, our assisted living community in Clarendon Hills is dedicated to offering more value and exceeding your expectations for exceptional senior living and care.
At The Birches, our unique and innovative approach to assisted living delivers quality of life and holistic well-being to all our valued residents. We focus on instilling personal choice, purposeful living, and enrichment opportunities into each day.
Download our free Guide to Financial Planning for Senior Housing and Care today to learn more about planning for assisted living costs.
