What is long term care Insurance and what does it cover?

In our previous blog, we talked about Alzheimer’s disease, including its medical prognosis, why planning is critical, the cost of care and who pays for it. If you have met with your financial advisor, as recommended, then you may have looked at several options. One such option is long-term care insurance.

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.[1]

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
• Hospice care
• Adult day service centers
• 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.

9 Reasons to hire 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[2]:

• 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:

1. Provide a thorough investigation of the best financial and policy option for your needs
2. Compare policies and reads all the fine print
3. Investigate the companies from which you are buying policies
4. Recommend policies that can cut the cost of long-term care insurance by balancing years of coverage versus per day payment allocation
5. Assures the insurance company has a person to notify if premium payments stop
6. 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
7. Assists in recommending and apply for policy for you in time
8. Investigates and recommends suitable options for shared benefit policies for couples
9. 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.

[1] http://longtermcare.gov/costs-how-to-pay/what-is-long-term-care-insurance/
[2] https://www.munnmorris.com/services/retirement-planning/investing-for-retirement/benefits-of-starting-early/