What is Long Term Care?

Long Term Care is a term used to describe various types of care or services provided to those with chronic or prolonged illnesses, disabilities, and cognitive disorders. The types of care included are: Nursing Home, Home Health Care, Adult Day Health Care, Assisted Living, Adult Residential Care, Respite Care, Continuing Care Retirement Communities, Hospice Care and Rehabilitation Therapy

The type of long-term care provided depends on the condition of the individual and that person’s ability to perform Daily Activities of Living (ADLs).

If you’re like most people, you probably know someone who has needed long-term care services. Maybe you’ve been a caregiver yourself. Either way, you may be wondering how you’ll handle your own long-term care needs. Will your family take care of you? Will you be able to stay in your home? How will the need for care impact your retirement nest egg?

Long Term Care Insurance Policies

The Basics of the Policy:

Policy Limit – The policy limit is calculated using the benefit multiplier (number of months, [24], [36], [48] or [60] months and monthly benefit you select. Your options include $1,500 to $10,000 per month, (Standard is $3,000 – $5,000 per month).

Calculate Your Policy Limit – Monthly benefit x benefit multiplier = policy limit (EX: $4,000 per month x 60 months = $240,000

Calendar Day Elimination Period – Your policy has a waiting period before policy benefits begin. The elimination period starts on the first day you are approved with a qualifying event. Once the elimination period has been satisfied, benefits for covered services are paid to you each month, up to the maximum monthly benefit you select. Your options for the elimination period include:  90, 180 or 365 calendar days before benefits start.

Things to Consider when determining how much coverage you may need.

What do you anticipate your cost will be for long-term care services?

How much can you afford to contribute to the cost of your care?

How much will you need your policy to pay in benefits each month?

How long do you think you will need long-term care services?

How long can you wait until your policy begins paying benefits?

Bottom Line is policies can be personalized to meet your needs.

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