Long-term care insurance, or LTC as it is commonly known in the insurance world, is a special type of health insurance that covers long-term care not covered by traditional health insurance policies. The policy is designed for people with severe illness or disabilities who will need extensive care over a long period. We realize that most individuals do not know the ins and outs of this type of insurance policy and how to benefit from it. Here at Bell Black, we have put together this short guide to educate you about long-term care insurance and some of the easiest ways to get extra coverage.
What is Long-Term Care Insurance
Just like regular life insurance, beneficiaries of long-term care need to meet certain requirements before the clause for the policy is triggered. The trigger for regular life insurance is death, whereas long-term care insurance beneficiaries have to be unable to perform two or more ADLs (Activities of daily living) to qualify for long-term care insurance. Once the beneficiaries of the policy have met the requirements, your insurer will begin paying for care. Some of the ADLs include:
- Moving around
- Using the toilet
Factors that Determine the Cost of Long-Term Care
The purpose of long-term care insurance is to cater to individuals who can no longer take care of themselves due to severe ailments or old age. Therefore, it is only logical that the cost is determined by the age of the beneficiary. The older the beneficiary, the higher the cost. A typical policy is issued for individuals between the ages of 40-85. Also, individuals who have a history of long-term illness in their families, such as Alzheimer’s or genetic diseases that affect motor functions, have higher premiums tags on their policies.
Life Policies that Include Long-Term Care
Some life insurance policies have long-term care insurance as an add-on. These policies include:
Whole Life Insurance
This policy has a fixed premium payment that has guaranteed cash benefits upon death, which goes to your family. If you have a long-term care insurance rider along with your policy, you can get long-term care benefits as and when the need arises.
Term Life Policy
Term life insurance is a policy that covers a specific period of time. If the policyholder passes away within that time frame, the payout is made, and if not, it is canceled. It is an affordable policy that is favored by many, and adding a long-term care insurance rider will allow you to maximize the policy.
Universal Life Insurance
This is a flexible policy that allows you to change the premium and payout values throughout the duration of the policy. It is a permanent policy that lasts throughout the lifetime of the holder. Adding a long-term care insurance rider will be beneficial if you ever need it in your later years.
Hopefully, this guide has helped you to better understand long-term care insurance and some of the ways to get this coverage. To learn more about how best to protect your future, contact the team at Bell Black Insurance. We can help you tend to your life insurance needs so that you get the best value for your money. We serve Idaho Falls, Island Park, Driggs, Victor, Swan Valley, Ashton, and the neighboring communities in Idaho, as well as Jackson and Star Valley in Wyoming.