Have you ever known someone who needed extra help due to physical in-capabilities or mental impairments, no matter their age? If so, then you may have seen first hand or heard someone else’s experience of being the care taker for that person who needed help. Being the person who needs help or the caretaker is not only a lot of work physically and emotionally, but financially as well. Fortunately, the financial burden can be lessened with the use of long term care insurance.
What is long term care insurance? Long term care insurance is a type of insurance that is purchased for an individual which helps mitigate the financial risk of depleting all the assets in order to pay for care and assistance when one can no longer perform at least 2 of 6 daily living activities or has a cognitive impairment like Alzheimer’s or dementia.
What are the daily living activities? These are every day things you do to function. They are the following:
Eating – able to feed oneself
Bathing – able to bath/shower, brush teeth, and groom
Getting Dressed – able to dress and undress
Mobility – able to sit, stand, and walk
Continence – able to control bladder and bowel functions
How does the insurance work? After a policy is purchased and when a person meets the criteria above, a claim is submitted to the insurance agency. The insurance agency will then provide the next steps needed like getting a doctor’s report and receipts from the care already provided or estimates on future expenses. Once the claim is approved, then payments begin. There are multiple options on how to receive payments. Those payments help offset the cost of the care.
How much insurance do you need? That depends on many factors of your personal situation such as your location, life expectancy, current assets, etc. The Genworth Cost of Care Map is an excellent source to get an idea of the various costs across the country. However, it’s best to sit down with a planner like us to review your particular circumstances and let us make a recommendation.
This blog just barely touches the tip of this iceberg. Long term care insurance and situations can go thousands of different ways. We’ll continue to break down the information one tiny piece at a time. In the meantime, don’t delay! Book an appointment with one of our specialists now!
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