When many people hear the words long-term care insurance, they immediately think of one thing: a nursing home.
But today’s long-term care insurance can be about something very different — giving you more choices about where and how you receive care.
Recently, I listened to executives from two major hybrid long-term care insurance companies discuss their claims experience. One statistic caught my attention: they indicated that fewer than 10% of their policyholders who go on claim ultimately need their benefits to pay for nursing home care.
That raises an important question: If people aren’t primarily using these benefits for nursing homes, where are they receiving care?
For many people, the answer is right where they want to be — at home.
Long-Term Care Has Changed
Today’s long-term care policies can provide benefits for care received in a variety of settings, including your own home.
Some of the newer cash indemnity long-term care policies provide a monthly cash benefit once you qualify for benefits. Instead of requiring you to submit bills and receipts for every covered service, these policies can provide much greater flexibility in how the money is used.
Depending on the specific policy, benefits may be available to help pay for:
• Professional home care
• Assistance with everyday activities
• Homemaker and personal care services
• Adult day care
• Family members or friends who help provide care
• Other expenses associated with remaining safely at home
This flexibility can be especially important when the person you want helping you isn’t necessarily a licensed healthcare professional.
What If Your Caregiver Is Your Spouse, Child or Friend?
Long-term care doesn’t always begin with a professional caregiver arriving at your door. Very often, care begins gradually. A spouse helps with medications. A daughter starts coming over several days a week. A son helps with meals, transportation or other daily activities. A trusted friend may become part of the support system.
With certain long-term care insurance policies, family members or other informal caregivers may be eligible to receive compensation for providing care, subject to the terms and requirements of the particular policy.
That can make an enormous difference for a family.
Instead of assuming that your children or spouse will simply absorb the responsibility — and potentially sacrifice their own work, income and personal time — your long-term care plan may provide financial resources to help support the people who are helping you.
The Goal May Be Staying Home
Most people I talk with aren’t planning for long-term care because they want to move into a facility.
They’re planning because they want choices.
If your health changes someday, having long-term care benefits available may give you more options to bring care into your home, compensate caregivers, make necessary arrangements and preserve more of your retirement savings.
That’s why the long-term care conversation has changed.
Instead of simply asking:
“How will I pay for a nursing home?”
A better question may be:
“How can I create a plan that gives me the best opportunity to remain at home and receive care on my terms?”
Learn What Today’s Long-Term Care Insurance Can Do
Long-term care insurance has evolved considerably over the years. Traditional policies remain available, while newer hybrid life insurance and long-term care solutions can combine long- term care benefits with additional features such as a death benefit if care is never needed. There is no single plan that’s right for everyone. Policy benefits, eligibility requirements, caregiver provisions and claim rules vary by insurance company and product.
That’s why understanding your options before you need care is so important.
At Long Term Care Insurance Advisors, Inc., we help individuals and families compare long- term care insurance strategies and understand how today’s policies can help protect their independence, their families and their retirement assets.
Want to learn what options may be available to you? Contact Long Term Care Insurance Advisors, Inc. to start the conversation.