Often, loved ones need help to go about their daily lives comfortably. It could be due to issues with their mental or physical health. Long-term care aims to cater to the personal needs of its enrollees, enabling them to live well. It ensures your loved one is looked after well. This affords you peace of mind as you go about your daily activities. Read on to identify various long-term care providers and how to finance them.
Long-Term Care Providers
Most people can live at home for years with help from unpaid family and friends. Yet, professional caregivers and therapists may be the best home money management tips for your household. This choice depends on the type of care your loved one requires. If the primary caregiver requires a short-term break, a respite caregiver fills in. They provide fill-in services for an afternoon or several days and usually charge by the hour.
Long-term care may be at home, at a facility, or at a community program. In-home care is ideal for loved ones with mobility-related issues. Long-term care providers may come daily or live within the house to help their clients live independently. Facilities include nursing homes and assisted living places. These provide practical care for loved ones who need help with everyday activities. These are Assisted Daily Living (ADL) and Instrumental Assisted Daily Living (IADL). ADL tasks are the basic day-to-day activities like breathing, eating, and bathing. Instrumental Assisted Daily Living is more complex. Help needed includes food preparation, laundry, and managing medications.
Community long-term care providers such as adult day care offer meals and transportation. If your loved one is financially eligible for Medicaid, then it is the best long-term care option for you. Approximately 25% of Medicaid recipients are elderly people and those living with disabilities, and states and the federal government finance this welfare program.
Long-Term Care Financing
About 70% of people who reach the age of 65 will need long-term care services. In 2021, the monthly median cost of living in an American assisted care facility was $4,500. However, this cost is subject to factors such as age, medical history, gender, and marital status. The older you get and the longer your medical history, the more intensive care is required. You can finance long-term care through one of the following ways:
- Veteran financing
- Personal funds such as savings
- Government health insurance programs
- Private health insurance programs
Since the odds of long-term care requirements are high, it is wise to buy an insurance policy to offset costs. These long-term care costs are high, and ignoring the risks involved can be devastating for you and your loved one.
Long-Term Care Insurance
Long-term care insurance offers an emotional and financial reprieve when caring for loved ones in their old age. Long-term care insurance benefits are usually tax-free. Common long-term care insurance options include traditional and asset-based. For the latter, if the LTC benefits are not needed, the death benefits go to the beneficiary. Alternatively, the policy can be surrendered for Return of Premium Benefit. Thus, it’s a good option for those who want to self-insure and reposition a low-yielding asset.
Most long-term care insurances have an elimination period. This is a time frame mostly of 90 days, between buying an insurance cover and gaining the benefits. Insurers impose this qualifying time as a contingency plan against policy cancellation. If your loved one requires long-term care before the end of this period, the insurance won’t cover any payments. Instead, payments will be out of pocket. This is still true if recovery occurs within this time. Consult your insurance service provider about this waiting period and whether it suits your loved one’s long-term care needs.
Long-term care offers a safe and independent life for loved ones who are either sick or disabled. This care may be at home or via a community service-based program. Additionally, its costs can be covered by the government or insurance. Consider these factors as you begin researching options for your loved one’s long-term care.