Long-Term Care Insurance (LTCI) Frequently Asked Questions (FAQs)
Long-term care insurance (LTCI) helps pay costs or long-term care in the home, at an assisted-living facility, or a nursing home. FCP Live-In, a leading live-in care agency, provides various services for older adults associated with long-term care.
How Long Do Most LTCI Policies Pay Benefits?
According to the Insurance Information Institute (III), the benefit period for LTCI policies may range from two years to a lifetime, according to Insurance Information Institute (III). Rather than selecting lifetime coverage, the III says policyholders can keep monthly premiums down by choosing coverage for three to four years, longer than the average nursing homestay.
The American Association for Long-Term Care Insurance (AALTCI) says most policies usually are capped at three years because open-ended plans are risky since it is difficult to predict how much care and the length of care a policyholder will need.
Does Medicare Pay For Long-Term Care?
Medicare and most traditional health insurance plans do not pay for long-term care. Medicare pays for hospital care, doctor services, home health care for limited skilled nursing or rehabilitation, and short-term stays at nursing homes.
How Long Do You Pay Premiums?
With many LTCI plans, policyholders are not required to pay their monthly premiums when they receive benefits. For instance, an individual who needs short-term nursing home care after an illness will not be required to pay monthly premiums. However, when the benefit is no longer needed, the monthly premium payments begin.
Some single-pay LTCI plans allow for policyholders to make one lump-sum premium payment. After the policy is paid, the policyholder is covered for as long as they live.
What Conditions Trigger Long-Term Care Coverage?
Most long-term-care insurance policies are triggered if policyholders have a severe cognitive impairment or need help with two out of six daily living activities, including bathing, dressing, toileting, eating, transferring, and continence.
How Much Is Long-Term Care Insurance For A 70 Year Old?
Insurance experts advise purchasing LTCI before age 70 since costs can dramatically increase as applicants get older. For instance, a 70-year-old couple can expect to pay $14,000 in annual premiums, compared to $7,000 for a 65-year-old couple and $3,500 for a 60-year-old couple.
An example provided by Genworth Financial’s long-term care cost calculator shows that the premium for a 50-year-old man to receive $182,500 in covered benefits for a claim at 79 (the average age for filing a claim), would be $56,278, based on a monthly premium of $161.72. A 70-year-old man who purchased the same policy would pay a monthly premium of $370.88.
A 50-year-old woman would pay as little as $43 more a month and pay $145 more at 70. Women usually pay more for LTCI partly because women tend to live longer than men and file more long-term insurance claims.
What is Federal Long Term Care Insurance?
The Federal Long Term Care Insurance Program (FLTCIP) is offered to federal employees, such as U.S. postal workers, active and retired members of the uniformed services, and other retired and qualified relatives. The
The Federal Long Term Care Insurance Program (FLTCIP), sponsored by the U.S. Office of Personnel Management (OPM), offers daily benefits from $100 to $450 in $50 increments. What’s more, the program’s benefit periods are two years, three years, and five years.
Federal Long Term Care Insurance Program (FLTCIP) premiums can increase, just like long-term care insurance offered by private insurers. However, the Federal Long Term Care Insurance Program (FLTCIP) offers what the OPM says is a built-in premium stabilization feature designed to reduce the potential need for future increases.
Unlike some private insurance policies, the FLTCIP does not offer a refund if the policyholder does not use the insurance, does not offer a discount to those in very good health, and may reject applicants in poor health.
What Health Conditions Disqualify You For Long-Term Care Insurance?
Some insurers disqualify LTCI applicants who have certain health conditions. For instance, the Alzheimer’s Association says that once an individual is diagnosed with Alzheimer’s, the individual will not apply for LTCI coverage. The association advises people who already have an LTCI plan and were diagnosed with Alzheimer’s to review their policy to make sure the disease is covered so that they can collect benefits.
Besides Alzheimer’s, some of the most common conditions and reasons for insurance ineligibility include:
- Intentional self-inflicted injuries
- Alcoholism and drug addiction
- Tobacco use in combination with Angina, Asthma, or COPD
- Currently in physical therapy
- Currently receiving care in a government nursing facility
- Cancer of the bone, brain, esophagus, liver, pancreas, and stomach
Some insurers will accept applicants deemed to be a high health risk, but the policy premiums are much higher than those considered a low health risk.
Does AARP Offer Long-Term Care Insurance?
AARP offers traditional, stand-alone, and hybrid LTCI policies underwritten by New York Life. AARP’s plans have four coverage levels, and each plan includes deductibles. For example, the basic level of coverage for AARP’s “My Care” plan has a monthly premium of $24.93 for a maximum lifetime benefit of $50,000 and a one-time deductible of $4,500. The reimbursement rate is 80 percent. Most LTCI plans do not include deductibles.
Premiums for AARP’s LTCI plans are based on the age of the applicants at the time they sign up, their current state of health, gender, and the level of coverage.
While AARP typically offers competitive plans, LTC experts advise comparing AARP’s plans with other LTCI plans since each state has its own regulations on the type of coverage insurers can offer.
About FCP Live-In And Our Long-Term Care Services
We have provided the ultimate solution for assisted Long-Term Care services since 1997. Our live-in Long-Term Care services agency is committed to providing a unique and customized In-Home Long-Term Care services approach to senior care with the goal of a lifestyle that offers enjoyment for the one in care and families with peace of mind.
Our services include:
Personal Care Services
- Help with bathing, showering, dressing, grooming
- Help with toileting, incontinence care
- Help with mobility
- Medication reminders
Light Housekeeping Services
- Dusting, vacuuming, sweeping
- Meal preparation
- Cleaning kitchen and bathrooms
- Laundry
- Grocery shopping
- Running errands
Companion Services
- Transportation to and from medical appointments
- Help with exercising
- Help with social and recreational activities
- Engaging client in meaningful conversation
At FCP Live-In, we customize our services to meet the unique needs of our clients. Our professionally trained live-in caregivers provide compassionate and respectful care and support that improves our clients’ quality of life.
If you want the best affordable live-in care from highly skilled caregivers, contact FCP Live-In. Call us today at 1-866-559-9492.
FCP Live-In is a Live-In Home Care company with over two decades of experience specializing in elderly care needs within the home. Our live-in caregiver staff provides an insurance policy of safe and supportive care, along with a 24-hour professional support system that starts with our direct care staff in the home and expands out to a multi-faceted corporate structure that is there for the client and the Live-in Caregiver at all times.
For more information about our Long-Term Care services, contact FCP Live-In today at 866-559-9492, or please fill out the form below.
Source Links:
https://www.iii.org/article/what-features-long-term-care-policies-should-i-focus
https://blogs.cfainstitute.org/investor/2016/09/19/the-pros-and-cons-of-long-term-care-insurance/
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https://money.cnn.com/retirement/guide/insurance_LTC.moneymag/index6.htm
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https://www.kiplinger.com/article/insurance/t036-c001-s001-when-long-term-care-policies-kick-in.html
https://www.aarp.org/caregiving/financial-legal/info-2019/when-to-buy-long-term-care-insurance.html
https://www.policygenius.com/long-term-care-insurance/
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https://www.ltcfeds.com/program-details/about-program
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