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Products | Group / Employer Coverage - Long Term Care
Your Employer may offer Long Term Care Insurance to the employees.
Will you ever need Long Term Care? The answer is probably yes, unless you don’t live long enough. Long Term Care Planning is a very important, and often overlooked part of Estate Planning. Sometimes the result of the Long Term Care Planning is that you can self-insure the risk. That is, your assets are sufficient to pay the costs associated with Long Term Care. Long Term Care is a threat to personal and family assets. Long Term Care is very expensive and the odds of needing Long Term Care are increasing as we live longer lives. If you run out of assets, you may qualify for Medicaid. Medicaid is a State operated program, jointly funded by the Federal and State governments, which can pay for medical benefits and Long Term Care for indigent people.
Paying the Costs of Long Term Care:
Your Employer may offer Long Term Care Insurance to the employees.
Will you ever need Long Term Care? The answer is probably yes, unless you don’t live long enough. Long Term Care Planning is a very important, and often overlooked part of Estate Planning. Sometimes the result of the Long Term Care Planning is that you can self-insure the risk. That is, your assets are sufficient to pay the costs associated with Long Term Care. Long Term Care is a threat to personal and family assets. Long Term Care is very expensive and the odds of needing Long Term Care are increasing as we live longer lives. If you run out of assets, you may qualify for Medicaid. Medicaid is a State operated program, jointly funded by the Federal and State governments, which can pay for medical benefits and Long Term Care for indigent people.
Paying the Costs of Long Term Care:
- Self Insure – Use the income from your assets, as well as the assets to pay for Long Term Care. When using this approach, be sure to factor in inflation. Long Term Care costs usually increase at a faster rate than other expenses. Will the income from your assets keep up with the inflation rate of Long Term Care costs?
- Medicare – Health Insurance for those over age 65 and certain disabled people. Many seniors mistakenly believe that Medicare will pay for Long Term Care. There is some limited coverage, but you should not rely on it when doing your Long Term Care Planning. Medicare will pay the full cost for 20 days in a Skilled Nursing Facility, and part of the cost of the next 80 days – but only if you qualify. To qualify you must first spend 3 days in the Hospital (not including the day of discharge) for a Medicare Approved medical condition. Then you must enter the Skilled Nursing Facility for continued care of the same Medicare Approved condition. Medicare will continue to pay as long as you show continued signs of improvement. When you reach a time when you are no longer expected to improve, Medicare coverage ends.
- Long Term Care Insurance - Long Term Care Insurance may be purchased to help pay for care which may be given at home, in an Adult Day Care Center, an Assisted Living Facility or in a Nursing Home.
Components of a Long Term Care Insurance Policy:
- Elimination Period – the period of time the insured person must wait to begin receiving benefits after becoming qualified for benefits. This is similar to a deductible in Auto or Health Insurance. Typical Elimination Periods available are 0 days, 30 days, 60 days, 90 days and 180 days.
- Benefit Period – the period of time over which the insured person will receive the Daily or Monthly Benefit Amount after satisfying the Elimination Period. Typical Benefit Periods available are 2 years, 5 years, 10 years and for the insured’s lifetime.
- Daily or Monthly Benefit Amount – the dollar amount that the insured person will receive during the Benefit Period. Benefit Amount is usually chosen by the insured based on the local costs of Long Term Care.
- Riders – there are many riders available such as: Inflation Protection (simple or compound), shortened premium payment periods, Indemnity Benefits, return of premium, survivorship paid up and shared care.