Long-term care insurance (LTCI) is more than a tax-free stream of income to help pay for care costs. You also get access to professionals – case managers, care coordinators, and claims specialists.
Some insurance companies even have a concierge service which is a specific person your loved ones talk with throughout the claim. These professional services help your loved ones manage your claim and situation, so that you get the best care possible.
LTCI pays for a variety of quality services including custodial care, skilled nursing care, therapy care, instrumental activities of daily living, stay at home benefits, respite care, bed reservation, and international benefits.
- Custodial care – Most long-term care insurance dollars paid out are for custodial care. Custodial care is getting help throughout the day with Activities of Daily Living including transferring, toileting, bathing, dressing, eating, and continence. It’s non-medical in nature.
- Skilled nursing care – High level of medical care that must be provided by or under the direct supervision of licensed health professionals. They help with things like complex meds, respirator, catheter care, iv therapy, etc.
- Therapy care – Physical, occupational, speech, etc.
- Instrumental Activities of Daily Living – Day-to-day tasks that allow someone to live independently but are not considered necessary for daily functioning like managing bills, hygiene, shopping for food and clothing, laundry, and light housekeeping.
- Stay at home benefits – Many policies pay for caregiver training so that your primary caregiver knows how to properly assist you or use a medical device. Home modifications and supportive equipment is also typically included too.
- Respite care – Many policies also provide respite care which is short-term relief for an informal caregiver so they can take a break from the responsibilities of providing care.
- Bed Reservation – Policies will also typically allow you to “hold your spot” for a specified number of days in a facility each year. This is important if you need to go to the hospital or if you stay with a family member for a bit of time.
- International benefits – Some policies also allow you to receive benefits outside of the U.S. and Canada.
The Bottom Line
Long-term care insurance is more than just a bucket of money. Yes, it helps to pay for your care, but it ensures your care is managed and you get a variety of quality services.