What is Long-Term Care Insurance?

long term care

Long-term care insurance covers what your health insurance won’t. For example, Medicare covers treatments within facilities, but not the costs for staying in them, nor will it cover non-medical assistance. Long-term insurance, on the other hand, will cover those expenses.

What Is Long-Term Care?

Long-term care is non-medical assistance you receive in a nursing home, assisted living facility, or even your own home. According to the US Department of Health and Human Services, more than 70% of seniors will require long-term care at some point in their lives.

Long-term care includes assistance with:

  • Bathing
  • Moving from one room to another
  • Getting in/out of bed
  • Using the bathroom
  • Eating
  • Getting dressed

Without insurance, you (or your loved ones) can expect to pay at least $50,000 annually for long-term care.

How Does Long-Term Care Insurance Enrollment Work?

Long-term care insurance mitigates these costs. When you enroll, you answer medical questions, either through an in-person appointment or over the phone. Your insurer may also request medical records.

You then pay premiums, which are priced according to:

  • Age (the older you are, the higher your premiums)
  • Health (poor health results in increased rates)
  • Gender (men pay less than women due to shorter life expectancy)
  • Marital status (married individuals pay less than singles)
  • Amount of coverage (the more extensive your coverage, the higher your costs will be)

How Does It Cover Long-Term Care Expenses?

Long-term care insurance becomes effective once you’re unable to do at least two of the six daily living activities (eating, dressing, using the bathroom, moving from one place to another, bathing, and getting in and out of bed).

When you file a claim, the company will review your medical documents, and have a nurse evaluate you. The insurer must approve your plan of care.

Then there is the elimination period, which lasts up to three months. During this time, you pay out-of-pocket for your long-term care services. Your coverage starts once this time passes.

The policy pays up to a certain dollar amount per day you receive care, up to a lifetime limit.

What Does Long-Term Care Insurance Cost?

While premiums vary between individuals, the average monthly premium is $225. 

But there is another side to this. As long as your long-term care insurance policy is tax-qualified, you can deduct a portion of your premium payments from your taxes. This must be an itemized deduction under the “medical expenses” category. The older you get, the more you’ll be able to deduct (e.g. someone 40 or under at the end of 2020 could deduct $450 when filing taxes in 2021, while those 71 and older could deduct $5,640).

Get The Care You Need At The Lowest Cost

At Senior Health Solutions, we’ll make sure you and your loved ones will be financially protected during your final years. Long-term care doesn’t have to be expensive. With our help, you’ll get the best long-term care insurance policy at the lowest price. Call us today at (636) 244-4415 to get started.

Contact Senior Health Solutions!

With Affordable Healthcare Solutions, you’ll enjoy the best customer experience available in the health insurance industry. Our licensed health insurance agents and knowledgeable customer service representatives’ work with you individually to ensure you make the most of your money. Count on us for professional, unbiased advice.