Senior Living Homes In Texas is very attractive to retirees due to their many benefits, which include gourmet meals, therapy, housekeeping, concierge services and many other perks. But elders or their families must be able to afford it, and many want to know if long term care insurance is a good option.
What is Long Term Care Insurance?
Long term care insurance policies are designed to cover the price of care that results from disability, disorder or a chronic health condition. The majority of said policies provide reimbursement for care which is provided in locations such as an adult daily care center, assisted living community, your home or a nursing center.
Because extended term fees form a core component of long range finance planning, waiting until the point you have to buy coverage isn’t recommended. The reason is because those that are already suffering from a medical condition won’t qualify, and in fact, the majority of insurance carriers will not approve applicants that are seventy five years of age and above. This is why it is advised to get this type of insurance either in your mid-sixties or mid-fifties.
Why do People Purchase It?
Administration for Community Living studies show that seventy percent of people who reach the age of sixty five and above will eventually need extended term care or support. However, standard insurance will not cover it, nor will Medicare, because it is limited to either shorter term nursing. It also won’t cover custodial care that involves supervision and assistance with daily tasks.
One reason why some elders acquire long term insurance is to shield their life savings. Because extended term care can rapidly deplete one’s retirement funds, the funds provided by an insurance plan can offset the costs. The second reason is to provide additional healthcare choices. The more funds you have to spend, the higher quality medical care you’ll get. Those that have to depend on Medicaid will be limited in terms of choices and nursing centers that will accept payment from that government program. This is why Medicaid doesn’t cover assisted living in most states.
However, the key thing to understand about extended care insurance is that people who are lower income with little savings will probably not be able to afford it. And even if you can, the National Association of Insurance Commissioners recommends never spending more than five percent of your annual income on such policies.
Will it Cover Assisted Living?
Certain long term insurance care plans will support stays in assisted living communities. However, each policy is different and it’s vitally important to do your research before selecting one. The majority of these policies will reimburse you for the costs you paid from your personal funds, but they will place a cap on the total amount that you will receive each year.
The limit tends to be low, to the extent that elders might find themselves with almost ninety percent of assisted living fees being paid. Still, these policies can lower the costs of nonmedical extended term care, and when used with Medicaid waivers and various other options can help elders manage their costs.
