Misconceptions About Long Term Care Insurance

Long term care insurance is a type of insurance that can cover home health care, assisted living, and nursing homes. But there are some misconceptions about long term care insurance. In this article, we will clear up some of these misconceptions.

1. I am Covered by Health Insurance

Health insurance only covers medical expenses, not assistance with activities of daily living. This wouldn’t include things like help getting dressed, bathing, or eating. Health insurance typically does not cover home modifications either.

2. It Only Covers Nursing Home Care

Long term care insurance covers home health care, assisted living, and nursing homes. In fact, 73% of claims begin with coverage for home health care. 18% begin coverage in assisted living facilities and only 9% of claims begin in nursing homes. Long term care insurance can help keep your options open regarding the type of care you want to receive.

3. It is Too Expensive

Many have the misconception about long term care insurance being too expensive. While premiums can seem high, the alternative of paying out of pocket is even higher. For example, having a home health aid come in for 30 hours a week can cost upwards of $32,000 a year. Long term care insurance helps you to preserve your assets and gives you something to leave behind to your family.

4. You Have to Submit Receipts Each Month to Get Benefits

Some policies require you to submit bills and receipts to receive coverage. However, you can purchase a cash indemnity policy that will pay you the full benefit amount. This gives you the freedom to use benefits for any needs you have. This could include using less expensive caregivers, like family members. Or paying for things insurance does not cover like transportation to appointments.

5. If You Do Not Use Your Policy, You Will Lose Your Premiums

You can attach financial products, like life insurance, to your policy for your loved ones to receive funds back after you pass. For most policies, if you do not use them, the insurance company will pay a death benefit to beneficiaries. You can also purchase a return of premium rider to ensure your investment is recouped.

6. Rate Increases Will Make a Policy Unaffordable

You can purchase a combo or hybrid policy. This type of policy locks in your premium and ensures your benefits will not be reduced.

7. We Cannot Afford Two Policies

With long term care insurance, you have the capability of purchasing a joint policy. This type of policy gives you a shared benefit pool that both parties can access. Even at the same time if necessary. It is typically less expensive than purchasing two separate policies.

Debunking Misconceptions About Long Term Care Insurance

Now that we have debunked these 7 misconceptions about long term care insurance, you are better equipped to purchase your policy. You should meet with a qualified insurance agent to help guide you through the process.

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