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"Long term care" essentially refers to daily life assistance for those with disabilities, chronic illnesses or the elderly. These daily activities could include helping people get dressed, bathe or use the bathroom. These services can be provided in a nursing home, an assisted living facility, in the community or even at home.
Because these services are costly, particularly over a long span of time, there is LTC insurance. LTC insurance can cover the daily life assistance, administering medications, rent and more.
Activities of Daily Life (ADLs)
When one has a LTC insurance policy, the long term care coverage typically kicks in when a certain amount of basic activities of daily life (ADLs) cannot be perform by one's self. Various insurance companies have various definitions and requirements but the basics are as follows:
1. Bathing, grooming, taking care of personal hygiene
2. Dressing and undressing
3. Eating, or feeding oneself
4. Transferring such as getting out of bed, moving into a chair etc.
5. Voluntarily controlling urinary and fecal discharge
6. Elimination such as getting to and from the toilet, controlling bowel or bladder functions, etc.
Government Run Alternatives
Many assume that LTC insurance is not needed because of the U.S. government programs Medicare and Medicaid. Few understand that Medicare does not typically cover LTC. Depending on the type of Medicare, it may only cover inpatient hospital stays, limited medical insurance and prescription drugs. There are eligibility requirements as well that should be taken into consideration.
Medicaid, on the other hand, is more focused on long term care but for low-asset categories of people. There are strict eligibility groups that take into account various requirement such as assets, age, pregnancy, disability, blindness, income and resources, and citizenship status. There are also guidelines about which facilities in which a person can reside.
Long Term Care Insurance Benefits
This is where LTC insurance comes in. There are minimal restrictions compared to Medicaid. Let's assume that you have a good amount of assets. If you depend on Medicaid, you might have to spend down your assets, sell what you own, in order to be approved into the Medicaid program. With LTC insurance, you keep your assets and choose how to use your LTC coverage and which facilities you might want to live in.
Do yourself and your family a favor by looking into long-term care options so that the expenses don't deplete your family's savings down the road. The earlier you look into long term care options, the better. Research the government programs and talk to you insurance agent about long term care coverage for your parents, yourself or other loved ones. It will be worth it in the long run.
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