Long-term care insurance is a crucial consideration as individuals plan for the future. To help you or a family member learn more about the intricacies of long-term care insurance, we’re exploring what it covers, and specifically, whether it encompasses the costs of care associated with assisted living facilities. Additionally, we’ll discuss alternative ways to finance assisted living for those who may not have long-term care insurance.
What Is Long-Term Care Insurance?
Long-term care insurance is designed to cover long-term care costs. Long-term care insurance is distinct from traditional health insurance, as it specifically addresses the costs of long-term levels of care and assistance with activities of daily living (ADLs). These ADLs include essential tasks like bathing, dressing, eating, personal hygiene, and transferring.
The need for long-term care can arise due to factors such as aging, medical conditions, chronic illness, disability, or injury. The goal of long-term care insurance is to provide financial assistance for the often-substantial costs associated with many types of care services.
What Does Long-Term Care Insurance Cover?
Long-term care insurance typically covers a range of services that fall under the umbrella of custodial care. This includes:
• Assistance with activities of daily living
• Personal care services
• The provision of care in a variety of settings, such as one’s home, adult day care centers, assisted living communities, or nursing homes
The specific coverage can vary based on the policy, so it’s crucial to carefully review the terms and conditions.
Does Long-Term Care Insurance Cover Assisted Living?
Assisted living provides a middle ground between independent living communities and nursing home care, offering personal care services in an engaging community setting. Assisted living also provides:
• Room and board
• Personal care services
• Medication management
• A range of other available health care services
• Recreational activities and programming
• Dining
• Social events
• Health and wellness classes
• Transportation services
• Amenities
In general, long-term care insurance policies can help to cover the costs of assisted living, but the coverage can vary.
Long-Term Care Coverage Assessment
It’s essential that you check whether the policy explicitly mentions assisted living coverage and assess and fully understand any limitations, requirements, and whether it adequately covers the anticipated costs of the assisted living community chosen.
It’s also crucial to understand how pre-existing conditions are handled in long-term care insurance policies. Some policies may exclude coverage for specific pre-existing conditions, so it’s essential to be aware of any limitations.
If necessary, seniors and families can consider upgrading their policy or purchasing additional coverage.
Other Ways To Pay for Assisted Living
While long-term care insurance is a valuable resource for covering the costs of assisted living, not everyone may have this coverage in place. What’s more is that because the financial landscape of long-term care is intricate, individuals and families often find themselves exploring alternative ways to pay for assisted living when long-term care insurance and traditional insurance are not an option.
Fortunately, there are strategies and funding sources beyond long-term care insurance that can help individuals meet the expenses associated with assisted living without compromising their financial well-being.
Personal Savings and Assets
Using personal savings or liquidating assets is a common way to cover the costs of assisted living. This option is suitable for those who have accumulated significant financial resources.
Individual or Couples Financing
Some individuals or couples may opt to use their income or retirement funds to cover the cost of assisted living. This is a viable option for those who have planned and saved for their long-term care needs.
Medicare and Medicaid
Medicare may cover some short-term stays in skilled nursing facilities but does not generally pay for long-term care in assisted living. Medicaid, on the other hand, may cover assisted living costs for eligible individuals with limited financial resources.
Find the Support That’s Needed at Sedgebrook
To make the journey to senior living easier, the key is to plan ahead, considering individual needs, preferences, and financial situations to ensure a secure and comfortable future.
At Sedgebrook, we are committed to supporting seniors no matter the care level they require. With our extensive offerings of health services, we are able to meet seniors where they are and provide the best support. Contact us to learn more about our community, services and how to pay for care.
