If you are a senior or the adult child of one, you might be wondering how your long-term care insurance (LTCI) can be utilized. Some older adults purchased a policy many years ago but aren’t sure what it actually covers. One popular myth is that LTCI can only be used if and when someone needs nursing home care. But in reality, policies may also cover Assisted Living communities too.
What do LTCI policies cover?
Long-term care insurance may help cover what are known as custodial care needs. This is made up of the activities of daily living (ADLs)—the tasks we all need to complete frequently, if not multiple times a day. They include bathing, grooming, dressing, using the bathroom and transferring to and from a chair or bed.
Who can benefit from having a LTCI?
LTCI covers the cost of care for policyholders who may no longer be safe living independently. That could be an adult with Alzheimer’s disease who develops memory impairment or a loss of judgment as their illness progresses and struggles with medication management. Or it might be a person with macular degeneration who has lost most or all of their vision and is at risk for falls. Living alone without assistance can put their physical well-being in jeopardy.
Understanding the terms of your policy is important.
The senior must first meet the LTCI company’s criteria for the policy to help pay expenses. Policies typically only cover services provided in licensed communities, such as American Senior Communities. In general, these policies require the senior to have a verifiable need for assistance with two out of the five ADLs. Once they do, the policy will typically pay a daily rate which can reduce the financial burden of families contributing to paying for their loved one’s stay.
Understanding the terms of your policy can bring peace of mind. The Senior Lifestyle Specialists at American Senior Communities can assist you in understanding the details of your LCTI policy. To find an assisted living near you visit our webpages Assisted Living or Memory Care Assisted Living.