Long-Term Care Insurance

Education

Frequently Asked Questions

Will the government pay for my long-term care?

Medicare will pay for long-term care expenses for a limited time (typically 100 days). This must be preceded by a hospital stay of at least three days.  In addition, Medicare only pays for skilled nursing case, and often times most long-term care is not skilled nursing care.

To qualify for Medicaid your assets must be “spent down” to low eligibility limits.

Will my medical insurance cover long-term care?

Most medical plans do not pay for long-term care.

How much does long-term care cost?

The cost of long-term care depends on what kind of care you need and where you are living when you need the care. Nursing homes cost an average of $266 per day for a private room and assisted living facilities cost about half that amount. Home health care usually runs $20-$100 per hour. As with all health care services, these costs are projected to go up over time. Click on this link to look up cost of care in your area at https://www.genworth.com/about-us/industry-expertise/cost-of-care.html

I am young and healthy…why do I need this insurance?

There is no “magic age” to purchase LTCi. The simple answer is to purchase when you are healthy and when you can afford premiums today AND in the future.

It is important to keep in mind the “cost of waiting”; i.e. the longer you wait to purchase LTCi, the more money you will spend in premiums in the long run AND the more difficult it will be to qualify from a health/medical underwriting standpoint.

What will this insurance cover?

Here are some of the services that LTCi can pay for:

  • Home Health Care: Assistance with activities of daily living (bathing, dressing, eating, toileting, continence, transferring), homemaker services (cleaning, vacuuming, laundering, food shopping, food preparation), help with managing and taking prescription medications, skilled nursing care
  • Assisted Living: Room and board, assistance with activities of daily living (bathing, dressing, eating, toileting, continence, transferring), help with managing and taking prescription medications
  • Nursing Home: Room and board, assistance with activities of daily living (bathing, dressing, eating, toileting, continence, transferring), help with managing and taking prescription medications, skilled nursing care
  • Other: Adult day care, hospice care, respite care, caregiver training

How will my benefits keep up with the rising cost of care?

To keep up with the increasing cost of care, we typically recommend LTCi policies that include either 3% or 5% automatic compound inflation protection for most applicants.

How can I determine if an insurance company is financially strong?

Independent companies like A.M. Best, Standard & Poor’s, Moody’s and Fitch issue ratings on the financial strength of major insurance providers. The COMDEX rankings and scoring system looks at all of the ratings and assigns a score from 1 to 100, with 100 being the safest and best score. The carriers we recommend have Comdex scores of 90-100. The primary carrier for this program has a Comdex score of 98.

Who is eligible?

All employees and retirees, spouses/domestic partners, parents, and in-laws. Certain health conditions may affect eligibility.

What is the process for applying?

An application covering health history must be completed. An advisor will walk you through the entire application. The approval process takes 6-8 weeks.

Will my premiums increase in the future?

Your premiums will not increase because you grow older, become ill, or make a claim. Your premium may be adjusted only if the premiums are adjusted for everyone in your state, class, or group.

How often do I pay premiums?

You can pay premiums monthly (via checking account deduction), quarterly, semi-annually or annually. There is a discount for paying once a year.

How do I get more information?

Please contact an advisor to schedule a no obligation phone consultation with an advisor who specializes in long-term care insurance.