What You'll Learn
Planning for the future can feel overwhelming, especially when it comes to arranging healthcare and senior living accommodations, but pushing it off until the last second can cause even more stress on your relationships and yourself as a primary caregiver. It’s time to take a deep breath and reach out to experts you can trust.
One tool that can provide peace of mind is long-term care insurance (LTCI). But how does it actually work, and how do you know if it’s right for your loved one? Let’s break it down.
What Long-Term Care Insurance Covers
Long-term care insurance is designed to help cover the costs of care when someone can no longer perform everyday tasks on their own, such as bathing, dressing, or managing medications. This care can take place at home, with a professional caregiver, in an assisted living community, or in a memory care setting. Policies vary widely, so it’s essential to understand what your plan will – and won’t – cover. Some policies include:
- Daily benefit amounts for community or in-home care
- Elimination periods (how long you must wait before benefits kick in)
- Coverage for respite care, caregiver training, or home modifications
It’s important to keep in mind that not all policies are created equal. Two plans might look similar on the surface but differ drastically in the services they cover and the costs they pay.
When and How to Purchase LTC Insurance
Timing matters when buying long-term care insurance. Premiums generally increase with age, so purchasing earlier can save money over the long term. Most experts recommend exploring options in your 50s or early 60s, but it’s never “too late” to plan as policies are available for older adults as well.
When considering a policy, ask yourself thoughtful questions, such as what types of care might I need in the future? How long do I want coverage to last? What is my budget for monthly premiums?
Coordination With Your Overall Plan
Long-term care insurance is just one piece of a larger retirement or care plan. It’s important to coordinate with:
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Medicare and Medicaid (which have limited coverage for long-term care)
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Personal savings or retirement accounts
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Other insurance policies
Exploring all of your available options with a dedicated senior living financial team ensures you’re not paying for overlapping services and helps maximize your benefits.
Some families struggle with LTCI due to confusion over policy language and exclusions, such as thinking Medicare will cover long-term care (it usually won’t), choosing a policy without understanding elimination periods or daily benefit limits, or underestimating future premium increases. Taking the time to read the fine print and consulting a financial advisor ahead of making a decision can save headaches, and money, later on.
Why The Arbor Company Makes Planning Easier
For over three decades, The Arbor Company has been proudly helping seniors and families navigate life decisions with the utmost compassion and expertise. Our award-winning communities across the U.S. focus on providing the highest-quality care, from our luxurious independent living communities to our state-of-the-art assisted living and memory care programs. Here, your family will find peace of mind and a lifestyle that feels just like home every day, complete with financial assistance every step of the way.
Plan Ahead With Confidence and Our Cost Calculator
Understanding long-term care insurance is simply the first step in finding a community setting that’s perfect for your needs. To make smarter financial decisions about senior living, our Senior Living Cost Calculator tool will help you estimate expenses for assisted living, memory care, and other helpful services near you. By combining careful planning, financial assistance, and professional guidance, you can ensure your loved one receives the care they deserve without unnecessary stress.
Access the Cost Calculator Tool here!