Long-Term Care Plans – What They Cover, How to Enroll

Long-Term Care Plans – What They Cover, How to Enroll

Whether it’s a result of aging, a chronic health condition, or an injury, many people end up needing long-term care at some point in their lives to live comfortably and stay healthy. Long-term care generally refers to help with everyday tasks, and it this help can be given to you in your home, at a nursing facility, or a day care facility. While long-term care becomes essential in some cases, it still can be prohibitively expensive without insurance coverage. If you do have insurance coverage for long-term care, your benefits will kick in once you require help with at least two of the following activities: going to the bathroom, eating, dressing, bathing, continence, or mobility.

What would a long-term insurance plan cover?

General health insurance plans usually don’t cover long-term care services, but supplemental insurance plans can fill in the gaps. Long-term insurance plans can cover things like:

  • Adult daycare
  • Skilled nursing care
  • Assisted living
  • Home healthcare
  • Nursing home costs
  • Some cover homemaker services (meal preparation and house cleaning)

What insurance plans cover long-term care?

If you only have Medicare, then it will not cover long-term care costs. However, if you can qualify for Medicaid coverage, then it will cover your long-term care. Check here to see if you meet Medicaid qualifications in Michigan. Qualifying for Medicaid to get your long-term care costs covered is important, as these costs can be extremely expensive out-of-pocket.

How much coverage to get and factors affecting cost

The amount of coverage you should get depends on your health and your budget. When deciding how much coverage you’ll get, keep in mind that in 2020 assisted living costs averaged just over $50,000 per year and a room in a nursing home averaged just over $100,000 per year.

Like most insurance policies, there are a range of factors that will affect how much your long-term care coverage costs. Here are some of the main ones:

  • Deductible – Your deductible is the amount of money you pay out-of-pocket before your coverage takes over. The less you pay up front for care in deductible, the more your coverage will cost per year.
  • Age – As you get older, enrolling in a long-term plan will become more expensive due to the increased likelihood you’ll need the care. After age 60, the costs begin to rise.
  • Benefit amount – Your benefit amount is how much the coverage will pay toward your care. You’ll have a daily benefit amount and a maximum benefit amount, and the higher each one is the more your coverage will cost.
  • Policy riders – Policy riders are optional additional coverage you can add, which will increase the cost. The most common riders are reimbursement, indemnity, and accelerated benefits for inflation.

Plan IV | Long-term care insurance plans and more

Living a comfortable life is important to happiness, especially as you age. Without the appropriate amount of long-term insurance coverage, it can be difficult to get the services you need to stay comfortable. With how high assisted living and nursing home costs have become, the majority of Americans cannot pay out-of-pocket for these services without clearing their savings and assets. Make sure you get the coverage you need to stay comfortable without breaking the bank. The experts at Plan IV can help you determine how much coverage you need and what you can afford, so that you don’t have to worry about affording long-term care when the time comes.

To learn more about our long-term care plans, give us a call at (248) 689-4910 or send in an online contact form with any questions!

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