What is Long-Term Care Insurance?

Long-term care insurance is separate from both typical health insurance and life insurance. It covers personal care that includes one’s activities of daily living such as bathing, grooming, and dressing. These policies can cover different care options such as non-medical in-home care, assisted living communities, board and care facilities or even nursing homes. There are many different combinations of coverage and benefits that can be used when the need is presented. 

One is given a daily pre-selected amount to pay for these services. This type of insurance is very helpful to have because long-term care can be very expensive and the need can happen very suddenly. This need can cause immense financial burden on the individual who needs the care and their family members. 

How much does it cost?

The cost of long-term care insurance depends on a few different factors. It depends on how old you are when you buy the policy, your gender, your marital status, the maximum amount that the policy will pay, how long the policy will pay (some may pay for a few years or may pay as long as you are alive), the maximum amount they will pay, and any optional benefits you may choose when selecting a long-term care package. An estimate of what one may pay per year for long-term care insurance starts at around $2,000 and can go up to $5,000-6,000. For more information about the insurance companies, Investopedia breaks down the pros and cons for each different company. 

There are also long-term care partnership programs. These programs are where states and insurance companies partner up to make long-term care insurance more accessible.They may have programs that allow more seniors to have access to Medicaid and protect more of their assets. If you or your loved one have more questions about long-term care insurance, your resource partners at WellPath Partners are ready to help.  

Things to remember:

1. The earlier one signs up for long-term care insurance, the better. Do not wait until the need is imminent.
2. Be aware of the amount of time – your insurance will pay for. If one selects a plan that has time limitations, one may be stuck with a hefty bill after the insurance runs out.
3. Premiums are not locked-in. The insurance company may raise the price of the premium so be prepared. 

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By Leila Lagandaon

Placement Coordination and Internship Supervisor at WellPath Partners

B.S. in Health Science at California State University Long Beach