- What are the different types of long term care insurance policies?
Depending on the contract, you could receive benefits of up to $10,000 per month. Some contracts offer you the possibility of submitting receipts, which is not subject to a ceiling. Some others even provide benefits in the form of a predetermined monthly income. You can use this income as you see fit, according to the needs of your family and yours. - What does long term care insurance cover?
Money from long-term care insurance can cover care for:
at home;
in a day centre for adults;
in an assisted living facility or long-term care facility.
These programs and facilities provide nursing, personal care, or homemaking services.
- How much does long term care insurance cost?
The cost of insurance depends on your age and state of health when you apply. Insurance costs less for young applicants. The annual cost also varies according to:
the type and amount of coverage selected;
the duration of benefit payments;
the waiting time you choose.
The waiting period refers to the length of time you must be continuously dependent on someone before applying for benefits. All long-term care insurance contracts have a waiting period of 30 to 180 days or more.
- What does “dependant” mean in a long term care insurance contract?
Generally, a person can receive long-term care insurance benefits when they become dependent on someone for their care. In other words, the person:
must be under the constant supervision of another person due to impaired mental faculties;
needs significant physical assistance with two activities of daily living (out of six), such as dressing or eating;
requires immediate help with bathing or getting around (e.g., getting out of a chair or bed).
- When can you receive extended-term care insurance benefits?
You can request payment of your benefits as soon as your insurance becomes effective. Most of the time that means right from the purchase. Other products only provide coverage after age 65.
Once the insurance is in effect, you must remain dependent for the entire waiting period provided for in your contract before you begin to receive benefits.
Some contracts pay benefits for one year. But others pay for two years, five years or even for an unlimited period.
Long-term care insurance is one of the various protections offered by life insurance companies. There is also disability insurance, critical illness insurance, personal health insurance and life insurance. Some insurers allow you to convert essential illness insurance to long-term care insurance between the ages of 60 and 65 without you having to answer questions about your health.
What type of life insurance do you need?
Long term care insurance benefits give you flexibility and control. The goal is to save you from having to borrow, dip into your retirement savings, or sell your home to pay for the care you need.
Talk to an advisor
Need more information? Do you not know where to start? An advisor can help you determine if long-term care insurance is right for you. Find an advisor.
Learn more:
4 Important Tax Credits for Caregivers
Preventing family bickering about caring for elderly parents
Finding the Right Long-Term Care Facility
