Basics of long-term care insurance
Long-term care insurance pays for services to help people with caregiving problems.
Carrying out some daily activities without assistance or requiring supervision due to cognitive impairment such as Alzheimer's disease.
Characteristics of the long-term care insurance system
The best insurance for nursing homes, retirement homes or
Profit house is usually expressed in terms of money per day and has a lifetime cap. Some policies pay half the cost of home care per day than nursing care
home care Others pay the same amount or have a "profit pool."
Use as needed.
Payment initiation criteria
This policy should state the various conditions that must be met. they can
as follows:
1. Inability to perform 2 or 3 specific "activities of daily living".without help
These include bathing, dressing, eating, going to the toilet, "moving" or "moving".
You can move from one place to another or between the bed and the chair.
2. Cognitive disorder
Most policies cover stroke, Alzheimer's disease and Parkinson's disease, but others
Forms of mental disorders may be excluded.
3. Physician approval for medical or long-term care needs
Need
Most policies have a "waiting period" or "exclusion" period. This is a course
It begins when a person first needs long-term care.
The policy is provided. No benefits will be paid during the waiting period.
This insurance policy only pays for expenses incurred after the end of the waiting period.
If the insured still needs care. Generally, the waiting time is longer
The longer the period, the cheaper the long-term care insurance premium.
Long-term care benefits can range from two years to a lifetime.
By choosing a 3-4 year coverage, you can keep the premium low.
Not a lifetime, but more than the average nursing home stay.
Most long-term care insurance is co-pay (or cost-sharing).
Up to policy limits. So if your policy includes $150 per day,
However, insureds spend only $130 per day on long-term stays in their homes.
For care providers, the policy pays as much as $130. "Extra" is $20 per daySome policies are placed in a "pool" of unused funds.
The period during which the insurance claim is paid. There are other policies
Based on the example above, the compensation policy will be as follows:
$150 per day pays for the time the insured needs and receives long-term care services, regardless of actual costs.
Inflation protection is an important feature, especially for those below.
A 65-year-old is buying benefits that may not be used for 20 years or more.
A good inflation reserve gives an annual return of 5%. without it
Inflationary support will decrease in 24 years even if the annual inflation rate is 3%.
The purchasing power of $150 per day is equivalent to $75.
Six other key policy provisions
1. Clearing period
In some policies, if the insured has qualifying long-term care expenses
1 day in 7 days
7 days satisfied to clear period: i.e.
Receive injuries and payments. Provisions are of this type
Home care is often provided. Some days by experts, some days by experts.
family member
2. Guaranteed renewable policy
These must be renewed by insurance companies, but premiums can be waived
If there is an increase, it will increase among the classes of the insured.
3. Waiver of insurance premium
This ruling does not require the policyholder to pay a one-time premium.
Start making profit
4. Third Party Notices
This article does not apply to a relative, friend or professional advisor
It will notify you when the policyholder forgets to pay the premium.
5. Unearned benefits
If the policyholder allows, these benefits retain a lower amount of insurance.
Loss of coverage. This requirement is required in some states.
6. Redemption of points
This article ensures that the maximum benefits when:
Policyholders receive benefits temporarily, then recover and go away for a specified period
You cannot receive benefits for a period of time (usually 6 months).
