Buying any type of health insurance requires researching various policies to ensure the terms cover the policyholder’s needs. Long-term health insurance care helps cover the costs of long-term care services and support. Knowing the coverage options can help consumers find the ideal policy to meet their healthcare needs. We will explore the long-term health insurance pros and cons for seniors needing coverage to pay for home care, assisted living, or a nursing home to ensure they make the best decision when choosing the right insurance plan.
Unfortunately, as people age, the need for assistance with daily activities like bathing, dressing, and eating increases significantly. Long-term care insurance can provide significant financial protection for consumers needing extended healthcare services. Without insurance coverage, Medicare and long-term care costs can quickly add up. Long-term care insurance helps cover these expenses, from in-home care to assisted living facilities and nursing homes.
Long-term care insurance can also provide the policyholder and their family peace of mind. Knowing that financial protection is in place can lessen the stress and burden of figuring out how to pay for long-term care. This is especially important as life expectancies continue to increase and more people live into their 80’s and 90’s.
What Is Typically Covered in a Long-Term Care Policy?
Generally, long-term care insurance policies cover a range of services and care settings. A standard policy will provide coverage for care received in the policyholder’s home, assisted living facilities, adult day care centers, and nursing homes. The policy may cover the costs of skilled nursing care, custodial care, and in-home care provided by a licensed home health aide or nurse. Many long-term care policies also include coverage for alternative care options, such as hospice and care coordination services, to help the policyholder and their family navigate the long-term care system. Some policies may even offer coverage for equipment and home modifications, like wheelchair ramps or grab bars, to help the policyholder remain independent for longer.
What Type of Care Is Typically Not Covered in a Long-Term Care Policy?
Like any supplemental health insurance, including Medicare supplement plans, a long-term care policy does not cover everything. Most policies have exclusions for certain types of care, like medical care provided in a hospital for an illness or injury. Policies also usually exclude coverage for care related to mental illnesses and consumers with a pre-existing condition at the time the policy was purchased.
Long-term care insurance may also limit the amount and duration of coverage. Policies often cap the daily or monthly benefit amount and the lifetime maximum benefit. There may also be waiting periods or elimination periods before the policy begins paying out benefits. Long-term care insurance generally does not cover experimental or investigational treatments, elective procedures, or care received outside of the United States.
What Is the Biggest Drawback of Long-Term Care Insurance?
Like most insurance policies, the biggest drawback of long-term care insurance is the high cost of premiums. Long-term care insurance can be quite expensive, with annual premiums ranging anywhere from $2,000 to $5,000 or more for a typical policy. This high cost makes it challenging for many consumers, especially those with limited incomes or savings, to afford long-term care coverage.
Premiums tend to increase as the policyholder gets older or starts off high if they have pre-existing conditions. These insurance policies also often have strict underwriting requirements. Insurers will closely scrutinize an applicant’s health history and current condition and may deny coverage. The high cost and restrictive underwriting requirements around long-term care insurance can limit access to this type of coverage for many consumers.
Discover Long-Term Health Insurance Pros and Cons
Knowing long-term health insurance pros and cons can ensure consumers make the right choices regarding their healthcare needs. HealthPlusLife aims to take the guesswork out of purchasing health insurance policies by educating consumers on all available options. We strive to assist consumers in navigating the complex insurance industry, ensuring they find the coverage that fits their budget. HealthPlusLife has the expertise and insurance services needed to help maximize your policy options if you need the best and most affordable health insurance plans for consumers. Please call us at 888-828-5064, TTY 711, to get started today.
Johanna Karlsson Johanna Karlsson is a veteran health and life insurance professional licensed in 50 states. She relocated from the countryside in the south of Sweden and has not looked back. After coming to the United States to attend university, she gained her degree in Public Relations. She brought her public relations skills to a local international health insurance where she discovered a new passion in insurance. After years with that company, Johanna now joins HealthPlusLife to help build a team of licensed insurance agents ready to meet your insurance needs.
