What is Long Term Care Insurance, and How to Use It

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At Home Personal Care

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Jul 05, 2023

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Texas - Dallas, Collin, SE Denton & Rockwall Counties , Non-Book Market

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What is Long Term Care Insurance, and How to Use It


As some may know, paying for in-home care for seniors can be very dauting, but we are here to inform you of how your Long-Term Care Insurance can be used to pay for services. Long Term Care (LTC) is a private insurance that covers either some or all cost of residing at a nursing home, assisted living, or remaining in the comfort of your home and receiving the consistent needed care. Long Term Care refers to a host of services that aren’t covered by regular health insurance which are Activities of Daily Living (ADLs). Care includes bathing, dressing, eating, toileting, transferring (walking), and continence. Most policies will reimburse you for care giving in a variety of places such as your home, nursing home, assisted living facility, and adult day care center. Long Term Care Insurance can be expensive and may last up to 3 years or more (up to 10+ years in cases of Alzheimer’s and Dementia). The cost of a policy is based on the type and amount of services, how old you are when you buy the policy, and any optional benefits you choose. The cost can also increase for individuals who are older, have health problems, or want more benefits within their policy. It may be easier to qualify for long term care insurance through an employer sponsored program which can enhance cheaper group rates than the cost of an individual policy.

Who pays? When it comes to who pays for long term care, these policies are often paid for by the individual who purchases the policy or a family member. It’s never too early to start planning for a long-term care policy. Family members often become responsible for paying for care services when a parent or loved one cannot afford to pay for their care. Children can also transfer the risk of paying for their parents care by paying for their long-term care insurance policy. When an individual can no longer do 2 out of 6 of the ADL’s mentioned above, long term care insurance pays for services you receive from an assisted living facility, nursing home, adult day care center, and your home. Buying coverage can lead to more options and less financial pressure on your family.

         Long Term Care insurance has many different payment methods which reflect on how to pay for a caregiver/private duty home care. The disability method pays out a daily benefit amount to an eligible policyholder whether they are receiving long term care services or not. The indemnity method pays a policyholder directly in the form of a preset dollar amount regardless of the cost they incur. You can also sign up for an annuity contract with an insurance company to help pay for long-term care services. The insurance provider will send you an annuity, which is a series of regular payments made over a certain period, in exchange for a single payment or a series of payments. Long Term Care Insurance does have an elimination period which is the period during care which care costs will have to be paid for out of pocket before coverage kicks in. Some policies have a zero-day elimination period so benefits can begin immediately while others have a 60-day, 90-day, or even 120-day requirement. If a policy has a longer elimination period a considerable sum of money may still have to be paid out of pocket to begin coverage. Please keep in mind that once the elimination period ends, you will be reimbursed by your long-term care provider. If you or your loved one has an (LTC) policy and needs care, our care team can assist you with explaining your benefit coverage at no cost.

         At Home Personal Care (214)-540-4940 Home - At Home Personal Care (athomeprctexas.com)

                           Tonya Dozier, Administrator

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Non-Medical 10000 N Central Expy Ste 400, Dallas, Texas, 75231

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