Long-term care insurance (LTC) is a type of insurance that pays for your stay in a long-term health care facility. That includes nursing homes, home-health care, and most types of supervised health care needs. LTC provides more robust coverage than Medicaid, and gives you more control over your needs for long-term care later in your life.

There are different reasons why you would want to buy a LTC policy, and they’re best discussed with a knowledgeable agent from a health insurance agency in NYC. Read on to learn more about the basics of a long-term care policy and the benefits of buying one to cover your future.

Why You Would Need It

There are no guarantees in life, and that includes being able to age in your home with little in the way of need for caregiving. It’s difficult to predict how your health issues will progress over time, and you may find yourself in a situation where you need long-term care in an outside setting or in your home. Getting a long-term health care policy lets you retain in control of your health directives and prevents the drawing down of your assets to pay for your care.

Medicaid and finances are issues that are addressed by LTC. You’re not forced to spend your retirement funds on care, and you don’t have to become destitute before you can get Medicaid to pay for your long-term care needs. Instead, you invoke the terms of your policy when you need to use them, and retain more control over your estate.

How It Works

When you make a claim on your LTC policy, the insurer begins a review of your medical records to determine your need for care. Long-term care insurance companies in NYC won’t approve the claim until they’ve completed a review, spoken to your medical provider, or sent out a nurse to perform an in-person evaluation. In the meantime, you have to pay out of pocket for your healthcare costs until a period of time has expired. That can be anywhere from 30 to 90 days, depending on the clause in your policy.

Once you’re deemed eligible to receive benefits, the insurer pays for your care up to a set amount on a daily basis. For example, the insurer agrees to pay $300 a day for your medical care. Any charges beyond that $300 are your responsibility, and there is a lifetime maximum amount that’s stated in the policy.

What’s Covered by Long-Term Care Insurance

As a general rule, LTC pays for medical and personal assistance needs that you’re unable to do on your own. That includes everything from getting in and out of bed to bathing and dressing yourself. Some of the long-term health care options that are covered include:

  • Nursing homes
  • Long-term care facilities
  • Rehabilitation facilities
  • In-home caregiving
  • Adult daycare

The Best Age to Buy Long-Term Care Insurance

You can buy a LTC policy at almost any age, but the best time is when you’re in your mid-50s. The cost of a policy increases with age, but they’re usually at their most affordable when you’re in your mid-50s to early 60s. Provided you’re in good health at this age range, you can save money on the cost of the premiums. Waiting until after this age range can make the policies more expensive and harder to afford.

Contact Us Today to Learn More About Getting a LTC Policy

Not sure where to start with long-term health care insurance in NYC? Call us at Margolis and Associates today to learn more about this type of insurance and how it can help you. Our team of seasoned insurance agents is ready to help you understand how it works and the benefits that are offered by different types of policies.