2 Things You Need to Know Before You Get Long Term Care Benefits
Long term care insurance policies cover the costs incurred for getting long term care services, like, stay at nursing home, assisted living facility, adult day care facility and also home health aides. Long term care policy applicants have to go through medical underwriting process. If you are receiving long term care services at the time of application, you may not be eligible to buy a policy.
Like other insurance policies, long term care insurance policies also have some regulations which determine how and when you can receive the benefits.You have to fulfil these criteria in order to start receiving the benefits as per the terms of the policy.Two of the most important ones are -
- Benefit triggers
- Elimination period
These are the list of conditions which make you eligible to receive the benefits of your long- term care insurance policy.
- Activities of daily living - there is a list of six everyday activities that all long-term care insurance companies consider as the standard. These are- eating, bathing, using the toilet, dressing, transferring (moving to and from bed or chair) and continence. If a person is unable to perform any two of these, he or she is considered to be eligible for benefits.
- The condition of the policyholder seeking benefits has to be certified by an authorized medical personnel or social worker through assessment of the person. The assessment is noted in the prescribed form by the authorized person.
- After the completion of the assessment process, the insurance company representative outlines the plan of care and approves the eligibility of the policyholder to receive benefits.
A long-term care policy will not start giving the benefits as soon as you are eligible to receive benefits.
- A policyholder has to wait for a certain period of time before the insurance company starts the benefits
- This period varies as per the terms of the policy - it can be 30, 60 or 90 days from the day the person is declared eligible to receive benefits
- Long term care costs during the elimination period have to be met by the policyholder on his own
- Some long-term care insurance policies make it a must to pay for services during the elimination period
After a policyholder meets these conditions, the insurance company starts paying the cash benefit amount according to the maximum daily amount specified in the policy. The payment can continue till the maximum lifetime amount value is reached. Some insurance companies offer the option of 'cash disability', at additional cost, which lets the policyholder start receiving benefits as soon as he or she is approved for the benefit triggers criterion.
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Are Long Term Care Insurance Plans Priced Uniformly Across The USA?
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- 40% receiving long-term care are working-age adults, ages of
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