Long term care insurance coverage is usually

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Long-term care insurance coverage is usually necessary in order for this to be a reality.
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Adult day care is a very useful add-on service that can be applied to a home care regiment. This is essentially adult respite care to give primary caregivers a much-needed break. There are facilities where a home health care recipient can be taken for a temporary stay (usually a matter of hours) while a primary caregiver gets a break. What if a person with Alzheimer's is living at home with their spouse and the spouse needs a break to run errands or go to appointments? Adult day care is a tremendous blessing for this caregiver. Long-term care insurance may offer a reimbursement plan where they simply pay all long-term care qualified expenses up to the daily limit imposed by the plan. If someone purchases a plan with a $200 daily benefit max but the actual cost is $300, the plan will still only pay $200 per day due to the limitations of the policy. However, if the actual cost is $150 per day, then that is the amount that the plan will pay. They may also offer an indemnity policy , which will pay a certain daily dollar amount regardless. If the daily dollar max for an indemnity policy is $200 and the actual expenses are $300, then the plan will only pay $200 (due to the daily max). However, if the actual expenses were $150, then the plan will pay $200 (the amount specified in the policy) and the remaining $50 of daily benefit can be used to pay for any other needs of the covered person. An indemnity policy can cost up to 20% more than a reimbursement policy. See this website if you want more information on these topics. (Links to an external site.)Links to an external site. Most LTC policies will have an embedded elimination period , which is a period of time when benefits are not paid. In a sense, this is like a deductible. The idea is that if someone needs intermediate care for only a few days, then the policy will not provide coverage, but if their needs last longer than the elimination period (which could be very short or as long as perhaps 90 days), then the LTC insurance policy will begin to pay benefits. Shorter elimination periods translate into higher insurance premiums. Some policies offer coverage for only a set period of time, perhaps 3-5 years, while others offer lifetime coverage. Obviously, longer periods of potential coverage equate to higher premiums. Another factor that will increase premiums is the presence of an inflation adjustment feature. Some policies do not have an inflation adjustment. Those that do will charge higher premiums. The importance of inflation protection increases as a client's age goes down (younger clients need inflation protection even more because they have a longer time horizon for the rates to rise). In order to be eligible to receive benefits, an insured person needs to either not be able to perform 2 out of 6 adult daily living (ADL) functions or be cognitively impaired (typically Alzheimer's or Dementia). The six ADLs are eating, bathing, dressing, transferring from bed to a chair, using the toilet, and continence.
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