Frequently Asked Questions

1. What is Long-Term Care insurance? Long-Term Care insurance is a type of insurance that helps cover the costs associated with long-term care services, such as nursing home care, assisted living facilities, and home care, for individuals who cannot perform certain daily activities on their own due to illness, disability, or cognitive impairment.

2. What does LTC insurance cover? LTC insurance policies vary, but they generally cover expenses related to long-term care services, including nursing home care, assisted living facilities, adult day care, in-home care, and hospice care. Some policies may also cover home modifications, caregiver training, and other related services.

3. When should I consider purchasing LTC insurance? It's best to consider LTC insurance when you're relatively young and healthy because premiums tend to be more affordable. Waiting until you're older or have existing health issues may result in higher premiums or even disqualification from coverage.

4. How much does LTC insurance cost? The cost of LTC insurance depends on various factors such as your age, health condition, the level of coverage, and the insurance provider. On average, the premiums can range from a few hundred to a few thousand dollars annually.

5. What are the alternatives to LTC insurance? Some common alternatives include:

   a. Self-funding: Saving money specifically for potential long-term care expenses. b. Combination Life/LTC policies, also referred to as Hybrid policies: These policies combine life insurance with an LTC benefit. If you don't end up needing LTC, the policy will pay out a death benefit to your beneficiaries. c. Asset-Based Plans: These plans  allow you to reposition the value of an existing asset (401k, IRA, Stocks, Bonds, Checking/Saving Account, Etc.) for long-term care if needed. d. Medicaid: For individuals with limited financial resources, Medicaid can provide coverage for long-term care services, but eligibility is subject to strict income and asset limits.

6. Does health insurance cover long-term care? Health insurance typically covers only medical expenses and may not cover long-term care services like nursing home care or custodial care provided at home. It's essential to understand the specific coverage of your health insurance plan.

7. Will Medicare pay for long-term care? Medicare provides limited coverage for skilled nursing care or home health care but does not typically cover long-term custodial care like assisted living or extended nursing home stays. Medicaid, not Medicare, is the primary government program that covers long-term care for eligible individuals with low income and limited assets.

8. What are the common eligibility requirements for LTC insurance? Eligibility requirements vary depending on the insurance provider and the policy. They often consider your age, health status, and any pre-existing conditions when determining eligibility and premiums.

9. Can I get LTC insurance if I already have health issues? Most Asset-Based Plans and some Hybrid or Combination Life/LTC insurance providers accept individuals with pre-existing health conditions but in some instances, certain LTC Insurance providers may exclude coverage for those specific conditions. Alternatively, you might be offered a policy with higher premiums.

 

Remember that it's crucial to thoroughly research and compare different LTC insurance policies and alternatives to find the best fit for your individual needs and financial situation. Consulting with a licensed LTCA planning agent can also provide valuable insight and guidance.