Long-term care insurance protects your finances if you have a chronic illness, disability, or brain impairment. It can help with things like helping you do your daily tasks and paying for medical care. But you might not be able to get coverage if you have a pre-existing disease, are too old, have health problems, or are disabled. Here are the pros and cons of long-term care insurance, a list of health problems that insurance companies don’t cover, and other ways to get the care you need on a small budget. You should talk to a financial advisor for help tailored to your needs.
What is coverage for long-term care?
Long-term care insurance covers the prices of the services for people who need care for a long time. It helps people pay for help with acts of daily living (ADLs) or medical services they need because of a long-term illness, disability, or cognitive impairment.
Long-term care services help with bathing, dressing, eating, going to the bathroom, and moving around. It can also pay for the work done by nurses, therapists, and home health workers. Some plans may even pay for care in nursing homes, assisted living facilities, or adult day care centres.
Also, this insurance is meant to help people ensure that the high costs of long-term care don’t wipe out their assets and savings. Regular health insurance doesn’t cover these costs, which can be very high. In the same way, Medicare and Medicaid don’t pay for these costs unless they meet specific standards and conditions.
When someone has long-term care insurance, they pay the insurance company’s regular fees. If they need long-term care services in the future, the insurance policy can help pay for some of the costs up to the limits of the policy’s coverage. Long-term care insurance plans can vary in their benefits and coverage, so it’s essential to read and understand the terms and conditions before buying a policy.
Long-term care insurance is usually more expensive and harder to get as you get older or have health problems that have been around for a while. It’s a good idea to consider getting long-term care insurance when you’re younger when premiums are cheaper and eligibility standards are less strict.
What keeps you from being able to get long-term care insurance?
When you ask for long-term care insurance, some things can make you ineligible or keep you from getting it. These things can be different depending on the insurance company, but here are some common reasons why you might not be able to get long-term care insurance:
1. Pre-existing conditions: Insurance companies often look at their medical background to determine how risky a person is. For example, if you already have Alzheimer’s disease, Parkinson’s disease, or some types of cancer, the insurance company may refuse to cover those illnesses or not cover them at all.
2. Age: Some insurance companies have age limits and may not cover people over a certain age, usually between 80 and 85. As you get older, the cost of your insurance tends to go up as well. On the other hand, you can only buy insurance if you’re 18.
3. You already have a disability or impairment that needs long-term care. If you already have a disability or impairment that requires long-term care, insurance companies may see this as a high-risk factor and refuse to cover you.
4. Cognitive problems: People with severe diseases like dementia may not be able to get long-term care insurance. Insurers look at the risk of cognitive decline and may not cover care needs linked to it.
5. People with a terminal illness may not be able to get long-term care insurance because the coverage is meant to cover long-term care needs, not end-of-life care.
6. Recent hospitalizations or major surgeries: If an applicant has recently been hospitalized or had a major surgery, an insurance company may require a waiting time or refuse to cover pre-existing conditions.
7. Substance abuse or mental health disorders: Some insurers may refuse to cover certain conditions linked to substance abuse or specific mental health disorders or may not cover needs related to those conditions.
8. Health that is worsening: If a person’s health is already deteriorating, insurance companies may refuse to cover them or charge them more to cover the extra risk.
9. Your criminal record: Insurance companies might not cover you if you have committed crimes in the past. This is especially true if you have committed any felonies.
Remember that not all insurance companies have the same rules, and long-term care insurance isn’t always available and doesn’t cover the same things. So, you’re thinking about long-term care insurance. In that case, it’s best to talk to multiple insurance companies, carefully read the policy’s terms and conditions, and ask an insurance expert or financial planner specializing in long-term care planning for help.