Do Long Term Care Policies Cover Assisted Living?

September 12, 2018

As you age, you will likely incur many charges you didn’t have before, including the costs of assisted living. Because your medical insurance, including Medicare, won’t cover assisted living or other types of long-term care, you may want to consider long-term care policies that help you pay for these costs.

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What is Long-Term Care Coverage?

Long-term care insurance helps you to cover the cost of services and support you may receive as you age. When daily activities become too hard to handle on your own, you may need someone to come into your home and help you or you may want to go and live in an assisted living center. The care the insurance covers isn’t medical care, per se, instead it’s to help the aging deal with their daily activities, such as bathing, eating, and dressing.

Long-Term Care Insurance and Assisted Living Facilities

Just like many other insurance policies, each long-term care insurance policy covers different things. Some policies cover assisted living without an issue, yet others don’t cover it at all. You may also find some policies in between that cover assisted living but only if the insured meets specific criteria.

For example, some insurance companies require that a physician states that the elderly person is unable to live on their own. Other companies require proof that the elderly person cannot perform two or more daily activities on their own, such as dressing or eating.

The Type of Coverage

You should also know the type of coverage your long-term care insurance policy covers. For example, some policies have a maximum dollar amount per day that they will cover, such as $50 or $100. Some policies have one rate they will pay for assisted living services. If the assisted living center you choose doesn’t accept that amount, you could find yourself with out of pocket expenses in addition to the premiums you paid for the insurance.

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Can You Get Around Paying for Long-Term Care Insurance?

Long-term care insurance has a difficult reputation. Some people stand behind it, saying that it is vital to help the elderly with their needs. Others think it’s a waste of premium, especially with the rising cost of care. Since long-term care insurance is most affordable when you are young, many people have outdated policies or don’t have the coverage that they thought they had when it comes time to use it.

One way to get around long-term care insurance is to set yourself up with your own savings plan. Whether you literally set up a savings account or you create some other type of investment that will grow with time, you can earmark the money for your long-term care. Some people do this instead of paying the premiums for long-term care.

Whether or not long-term care insurance covers assisted living depends on the company chosen. If you do decide to purchase this type of insurance, make sure you shop around. Get quotes from at least three insurance providers so that you can see the different policies, deductibles, and coverage allowed. This way you can figure out if it’s worth it to buy the policy or if you should set up your own savings.

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