Long-term Care Insurance: How it works

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According to a recent study, 70% of those who are 65 and older will eventually need some sort of long-term care during their lifetime. So, what does this mean for Medicare beneficiaries? While Medicare does help cover certain medical costs, it’s best to not rely on Medicare to help cover long-term care costs. 

Before jumping into its coverage, let’s first discuss what long-term care is actually referring to.

Long-term care, also referred to as custodial care, involves services for those who are not able to perform regular everyday activities such as getting dressed, using the bathroom, eating, or even bathing, and can be provided at home or in certain facilities, such as nursing homes. It can also include transportation services. 

Long-term care is usually needed when people have a serious condition or disability, or have suffered from a stroke or heart attack, for example. 

What does long-term care insurance cover?

Long-term care can cost up to thousands of dollars for services (up to $8,000 or more per month), but investing in long-term care insurance can help cover the following benefits:

  • Nursing home care and assisted living facilities
  • Adult daycare services
  • In-home care
  • Home modifications
  • Care coordination

What are the different types of long-term care insurance?

There are two different types of long-term care insurance: Traditional Long-term Care and Hybrid Long-term Care. 

With a Traditional Long-term Care plan, you are guaranteed that at least a portion of the bill will be covered. However, there is a chance that you can be denied long-term care insurance because of these reasons:

  • You’re already using long-term care services
  • You already need help with daily living activities
  • You have AIDS or AIDS-Related Complex
  • You have Alzheimer’s, dementia, or any other cognitive dysfunction
  • You have a neurological condition such as multiple sclerosis or Parkinson’s
  • You have a history of strokes or have had one within the last two years
  • You have metastatic cancer

With a Hybrid Long-term Care plan, you’re actually receiving a policy that combines both life insurance or an annuity and long-term care insurance coverage together. With this policy, you have the ability to access the death benefit, which means in the event of your death, your beneficiaries will receive a payout as long as the funds have not been exhausted. However, it can be expensive as the premium is sometimes expected up front. 

How can I buy long-term care insurance?

There’s no reason to make a rushed decision right away. You can talk with a licensed insurance agent and they can help you find quotes or compare prices to find which plan works best for you. If you’re already enrolled in Medicare, it’s important to note that Medicare doesn’t usually cover long-term care services. However, it’s still best to continue your plan with Medicare as it can still help provide coverage for hospital stays, doctor services, and medical supplies.
Reach out to us and book a free consultation today so we can help you determine which Medicare plan works best with your long-term care! Our experienced insurance agents work for you, not the insurance company, so give us a call today at 662-844-3300.

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Justin Brock

President & CEO of Bobby Brock Insurance