Golden Benefits Senior Services
415-454-3359 or
mobile 415-518-3390
Long -Term Care Insurance
"There are only 4 Types of People in This World
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Those who have been caregivers
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Those who currently are caregivers
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Those who will be caregivers
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Those who will need caregivers"
-Rosalynn Carter
Long-term care insurance (LTCI) is a type of insurance policy designed to cover the future costs of care associated with a chronic condition or disability that requires extended or long-term care, provides hands-on assistance or standby assistance to individuals who have functional or cognitive impairments associated with basic activities of daily living. If a policyholder becomes eligible for long-term care, the LTCI policy provides a daily cash amount to pay for the care.
Types of Insurance:
* Long Term Care Insurance Policy- These are the standard policies that pay for care in your own home, an assisted living facility, memory care, or skilled care.
* Long-term care hybrid- These policies are either annuities with a long-term care rider or an insurance policy with a long-term care rider.
Coverage Amount and Length
Individuals must choose a daily benefit amount that they expect to be reimbursed. They also choose an inflation protection factor which can be 5% compound or simple inflation at different rates. Some may choose no inflation but that is not recommended unless one starts with a very high daily benefit.
Time period or length of coverage is usually chosen as 2-6 years but the reality is you are purchasing a "Pool of Money." The daily benefit times 30 days x number of years will give you your "pool." If you do not use the full daily benefit, your pool of money will last longer than the time you chose. EX. If you use half of your 3 year daily benefit, it could extend up to 6 years.
In order to qualify for benefits, you must not be able to perform 2 out of the 6 Activities of Daily Living (ADL’s) without substantial assistance. the ADL’s are:
*Bathing *Toileting
*Dressing *Transferring
*Eating *Continence
Or, when you need help because of severe cognitive impairment.
AND a health care practitioner certifies that you will need care for 90 days or longer.
