Is Long-Term Care Insurance Worth It?

We often take life for granted when we are younger, aimlessly going throughout our days without a care in the world. Only when something is taken away do we fully appreciate the importance of its actual value. Nothing is truer than the significance of our health. Without it, we cannot fully enjoy life’s unique experiences.

As we age into our senior years, health decline is inevitable. Immobility, memory loss, and difficulty performing normal daily activities are just some of the challenges many seniors face, altering reality for the worst. For many seniors, the issue is compounded by the grim actuality that they cannot afford the necessary care required. Have they taken their health for granted? Perhaps not, but without long-term care insurance, they may have taken their future for granted.

Below, we take a deep dive into the importance of long-term care insurance. What does it cover? How much should you expect to pay each year? Is getting a long-term care insurance policy worth it? These are just some of the questions answered by Jonathan Miller and Michael Mastroieni at Longevity Income Solutions.

What Does Long-Term Care Insurance Cover?

Long-term care insurance is a policy that covers costs associated with long-term care services and support. Most policies are comprehensive, meaning they cover a vast array of services, including home care, assisted living, hospice care, skilled nursing, adult day care, etc. to provide assistance with activities of daily living. Furthermore, long-term care insurance policies are designed to cover costs that Medicaid and Medicare do not cover.

It is important to know that Long-term care insurance does not cover medical expenses such as emergency room visits, dental, regular physician checkups, surgeries, or appointments with specialists. Also, you may not qualify for certain coverages if you have certain pre-existing conditions.  

Average Cost

The best way to think of long-term care insurance is an investment in your future. You have an asset in your long-term care insurance policy. That said, you should be aware of long-term care insurance annual costs before taking out a policy.

The amount you pay into your policy every year will depend on your age, pre-existing conditions, policy benefits, and if you are applying jointly with your spouse. Annual costs can range from $1,000 to $8,000 per year. Here is a helpful price index by the American Association for Long-Term Care Insurance. Long-term care insurance might seem like an expensive cost now, but when you need care and support, it’s a lifesaver!

Qualifications and Eligibility

When applying for a long-term care policy, age and health are important considerations to qualify for coverage.  Depending upon the policy chosen there are age limits and, because medical underwriting is a prerequisite, certain preexisting health conditions could make you ineligible, including Alzheimer’s disease, Parkinson’s disease, drug or tobacco use, and recent surgery. The underwriting insurance company’s primary requirement is a health screening, usually done over the phone or through a face-to-face interview.

You cannot tap into the policy benefits upon obtaining long-term care insurance without being deemed chronically ill. This means you are eligible only when unable to perform at least two activities of daily living for a period of time, generally about 90 days. You must also have a licensed physician’s prescribed plan of care for benefit eligibility.

How Longevity Income Solutions Can Help

Whether you are considering acquiring a long-term care insurance policy for the first time or would like to make changes to your existing policy, Longevity Income Solutions can help. We help families with: choosing coverage that’s appropriate for their situation, evaluate their existing policy and assist with accessing their benefits to get the best possible care, all in the interest of saving money.

We have local US offices in Philadelphia, Chicago, and Boca Raton. Our primary focus is the senior healthcare market, most notably providing Elder Care financial solutions for those requiring services at all levels of care, including home healthcare, assisted living, memory care and nursing facilities. Even if you have pre-existing conditions, it’s never too late to plan.  Please contact us today to learn how we can help you make an informed decision!