Unlike traditional health insurance, long-term care insurance is designed to help cover long-term care expenses for people with chronic illnesses, disability or other conditions – whether the person lives at home, a community organization or other facility. The policy assists with activities of daily living, such as bathing, dressing and eating. To determine if a long-term care policy is right for you, compare the amount of the policy’s daily benefits with the average cost of care in your area. Keep in mind that expenses the policy doesn’t cover are your responsibility. Selecting “inflation protection” ensures your benefit won’t erode.
There are benefit triggers that must occur before a policy will begin to pay. Usually, you can begin receiving benefits upon needing assistance with two “activities of daily living (ADL).” The six basic ADLs are eating, bathing, dressing/grooming, using the bathroom/continence and ambulating (walking/moving from one place to another) as well as transferring (moving one body position to another – like moving from wheelchair into a bed. The ability to perform these ADLs is what determines your medical status for health coverage and long-term care.
If you have been diagnosed with dementia/Alzheimers or an organic brain syndrome you typically already need assistance in one or more of these activities of daily living.
The ability to perform these ADLs is what determines your medical status for health coverage and long-term care.