What is long term care Insurance and what does it cover?
Long-term care insurance is designed to cover long-term services and supports, including personal and custodial care in your home or a community organization, or other facility.
Long-term care insurance policies reimburse policyholders a limited daily amount for daily living services such as bathing, dressing, or eating. You can select a range of care options and benefits as per your needs. Most policies sold today are comprehensive. They typically allow you to use your daily benefit in a variety of settings, including:
- Your home
- Adult day service centers
- Hospice care
- Respite care
- Assisted living facilities /residential care facilities /alternate care facilities
- Alzheimer’s special care facilities
- Nursing homes
In the home setting, comprehensive policies generally cover these services:
- Skilled nursing care
- Occupational, speech, physical, and rehabilitation therapy
- Help with personal care, such as bathing and dressing
Generally, when a person has Alzheimer’s disease, it is too late for families to buy it. Preserving Medicaid’s long-term care safety net is thus essential. However, it is not the only solution to meeting long-term care needs. Recent changes in tax law have allowed for the deduction of long-term care expenses and help families who purchase long-term care insurance.
Benefits of Hiring a Financial Planner for Long Term Care Insurance and Planning
Long-term care insurance can be directly purchased from an insurance agent, a financial planner, or a broker. Some important points to consider:
- States regulate which companies can sell long-term care insurance and the products that companies can sell.
- There are more than 100 companies offering long-term care insurance nationally, however 15 to 20 insurers sell most of the policies.
- The best way to find out which insurance companies offer long-term care coverage in your state is to contact your state’s Department of Insurance.
If you are looking for a more holistic view of your finances and long-term needs, you may want to consider engaging a financial planner for purchasing your insurance plan from Munn & Morris Financial Advisors. Here are 9 reasons why a CFP is a good decision:
- Provide a thorough investigation of the best financial and policy option for your needs
- Compare policies and reads all the fine print
- Investigate the companies from which you are buying policies
- Recommend policies that can cut the cost of long-term care insurance by balancing years of coverage versus per day payment allocation
- Assures the insurance company has a person to notify if premium payments stop
- Authorizes someone responsible and to advocate when the time comes to use the policy or to file a claim to the company on your behalf
- Assists in recommending and apply for policy for you in time
- Investigates and recommends suitable options for shared benefit policies for couples
- Reviews long-term care plans annually and suggest options to change coverage or revisit your decision periodically
Munn & Morris Financial Advisors can help you with all your long-term care planning needs. Contact us today to schedule an appointment.d use a proactive approach designed to take action during market volatility.