Long term care insurance is a care insurance product that reimburses policyholders for the cost of long term care. It covers services that assist in daily activities that are not covered by private insurance, Medicare, or Medicaid. It covers home health services, nursing homes, assisted living facilities, and adult day care centers. With long term care insurance, policyholders have the flexibility of selecting care options and benefits that cover their needs.
Types of Benefits
The types of care insurance policies are:
• Traditional policies: traditional policies are usually more affordable and allow policyholders to select their benefits.
• Combination or hybrid policies: hybrid policies require a one-time single premium up-front. With hybrid policies, the policyholder can receive their premium back if they never receive long term care.
HOW DOES LONG-TERM INSURANCE RELATE TO WORKPLACE BENEFIT
• Employers can sponsor group life insurance, accidental death, and dismemberment insurance, and extended health care and disability benefit plans for their employees. Employees can make claims and get paid based on your employers sponsored plan specific coverage.
WHO IS LONG TERM INSURANCE FOR?
• Long-term insurance is for both elderly and young people, and it varies from one caregiver to another because it includes assisted living services, which involve 24 hour supervision assistance with eating, bathing, dressing, toileting, taking medicine, transportation, laundry, social and recreational activities for elderly and also young people, people who are physically challenged that require long term care.
HOW DOES IT WORK
• Anyone who is interested in purchasing the insurance is required to fill out an application and answer health questions. After the application is completed and sent, insurers will then reach out to applicants and ask for other documents such as medical records. After this process is complete, the insurer will invite selected applicants for either a phone or an in-person interview. Once an applicant is approved, he or she can start paying premiums.