Around 70% of people aged 65 will someday need the support provided by long-term care services. Long-term care insurance is one way to plan for the future and ensure you’ll have money available to help cover the costs of care if you ever need it. In this piece created by our team here at The Gardens senior living community in Springfield, MO, you’ll learn what this type of insurance is, how it works and how to decide whether it’s right for you.
Long-term care insurance is a type of insurance that protects you from the costs associated with long-term care that you might need in the future. In Missouri, a company must be licensed with the state Department of Insurance to sell long-term care insurance.
A long-term care insurance policy will typically pay a maximum amount per day for covered services. In order for the policy to pay, you’ll usually need a health care provider to attest to the fact that you’re unable to independently perform at least two of the following daily living tasks:
Many policies will also begin providing benefits if you require care due to dementia or another cognitive impairment.
In exchange for long-term care coverage, you pay a premium, which is usually assessed on a monthly or quarterly basis. Most policies have an elimination period, a set number of days when you need to pay for long-term care costs out of pocket before the insurance will start covering expenses. For example, a policy with a 90-day elimination will require you to pay for services yourself for 90 days.
Insurance companies may also place a lifetime cap on the amount a policy will pay. Once your expenses exceed the cap, you’ll be responsible for paying all your long-term care costs.
If a person passes away without ever using their long-term care benefits, insurance companies won’t refund premiums paid or offer a payout. However, some will allow the policy to be transferred to a spouse or other surviving relative. In this case, the person who takes over the account will usually need to make monthly premium payments.
What long-term care insurance covers varies from policy to policy. Depending on the terms of the policy, long-term care insurance may cover:
How much you can expect to pay for long-term care insurance depends on:
Before purchasing long-term care insurance, it’s important to weigh the benefits and drawbacks of coverage. Some of the advantages to purchasing long-term care insurance include:
Some disadvantages of long-term care include:
To determine whether long-term care insurance is right for you, consider:
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The Gardens Assisted Living and
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1302 W. Sunset St.
Springfield, MO 65807
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