Long-term care insurance is an excellent way to prepare for rising care costs, but it’s not a one-size-fits-all solution. Let’s explore the gaps in coverage so you can build a more comprehensive care plan for the future.
What is long-term care insurance?
Long-term care insurance is designed to help cover the costs of care that are not typically covered by health insurance, Medicare or Medicaid. This includes services like in-home care, assisted living, and nursing home care. It assists you with the five daily acts of living such as grooming, dressing, toileting, transfer or ambulating, and eating.
What is not covered?
Long-term care insurance provides a wide range of coverage options; however, it does not cover everything. Long-term care insurance will not cover:
- Terminal illness: Long-term care insurance is meant to cover the cost of care support and services for those who need assistance in doing basic daily living activities. The policy isn’t designed to cover end-of-life care.
- Medical care costs: Long-term care insurance generally does not cover medical treatments, hospital stays, or prescription drugs. These are typically covered by health insurance or Medicare.
- Care provided by family members: Skilled care by licensed professionals can be covered by long-term care insurance. However, Informal care provided by family members is not usually covered unless specifically stated in the policy.
- Home modifications: Structural changes to a home like wheelchair ramps or stairlifts, are excluded unless the policy includes a rider for these costs.
Do I need long-term care insurance?
The Department of Health and Human Services reports that 69% of people will use long-term care services at some point. Medicare and Medicaid offer little coverage for long-term care, and relying on family members for care can be emotionally and financially exhausting. Paying for long-term care out of pocket can be expensive, with the average cost of care for a private room in a nursing home is $113,530. Long-term care insurance can protect you from the high costs of caregiving services. It provides you with the invaluable peace of mind that you or your loved ones will be cared for in the future.
Let’s talk
Navigating the world of long-term care insurance can be confusing. Contact one of our experienced Avery Hall agents today for a free consultation at 410-742-5111 for our Salisbury office, 410-822-7300 for Easton, and 302-316-6565 for our Selbyville office.