Long Term Care Insurance in California
Individuals and families planning for potential extended-care needs can face insurance concerns involving home care, assisted living, nursing care, benefit periods, elimination periods, inflation, and long-term retirement assets. Understanding those exposures makes it easier to compare policies on more than price alone.
Insurance options can vary considerably between companies. AIM First Insurance Servicescan help clients in California compare available policies and review important differences in coverage, limits, deductibles, eligibility, and exclusions.
How Does Long Term Care Insurance Work?
Long-term care insurance is designed to help with eligible costs associated with extended personal or custodial care. Depending on the policy, benefits may be available for care at home, assisted living, adult day care, or a nursing facility after benefit eligibility requirements are met.
The goal is not simply to purchase a policy with the lowest premium. It is to understand the exposures involved and select insurance that fits the individual, property, vehicle, or business as closely as possible.
Long Term Care Insurance Coverage Options
The appropriate coverage depends on the specific situation. Options may include some of the following protections.
Home Care Benefits
Many policies may provide benefits for qualifying care delivered in the insured’s home, subject to the plan of care and policy requirements.
Assisted Living Benefits
Coverage may help with eligible long-term care expenses in a qualifying assisted-living facility.
Nursing Facility Benefits
Policies may provide benefits for qualifying care in a nursing facility when the insured meets the contract’s benefit triggers.
Elimination and Benefit Periods
The elimination period determines how long qualifying care must occur before benefits begin, while the benefit period or pool determines how much coverage is available.
Inflation Protection
Optional inflation features may increase available benefits over time to help address rising long-term care costs.
Long Term Care Insurance FAQs
What does long-term care insurance pay for?
Policies may provide benefits for qualifying care in a home, assisted living facility, nursing facility, adult day care, or other covered setting, depending on the contract.
When do long-term care insurance benefits begin?
Benefits generally begin after the insured meets the policy’s benefit triggers and any applicable elimination period.
What are activities of daily living in long-term care insurance?
Policies commonly use activities such as bathing, dressing, eating, toileting, transferring, and continence when determining benefit eligibility, along with cognitive-impairment provisions.
Does Medicare pay for long-term custodial care?
Medicare generally does not provide open-ended coverage for custodial long-term care. Its coverage is focused on qualifying medical and skilled-care circumstances.
