Summary List Placement
Most Americans will need some type of long-term care, either at home or in a nursing home.
Traditional long-term care insurance is a “use it or lose it” policy, and it requires receipts.
With hybrid long-term insurance, you get a monthly payment whether or not you need care.
Visit Personal Finance Insider for more stories.
Table of Contents: Masthead Sticky
Industry experts say 50% of Americans will need some type of long-term care assistance — at-home care, assisted living, or care in a nursing home — in their retirement. “Americans are living longer, but not healthier lives,” said Mark Williams, CEO of Brokers International.
But it comes at a major cost. Barbara Pietrangelo, a certified financial planner and life insurance specialist with Prudential, told Insider that rates for long-term care insurance have increased (sometimes even doubled) over the years. To minimize the expense, it’s best to get long-term care when you are healthy and in your 40s.
Long-term care insurance is a “use it or lose it” policy, meaning if you don’t need it during your lifetime, you don’t benefit from paying premiums all those years. However, hybrid long-term care insurance is an alternative that will lock in the value of your premiums whether you end up using long-term care or not.
What is long-term care insurance?
According to the US. Department of Health and Human Services, “Unlike traditional health insurance, long-term care insurance is designed to cover long-term services [at-home, assisted living, and nursing home] and supports, including personal and custodial care.”
If you are in poor health or already receiving long-term care services, you may not qualify for long-term care insurance, as you’ll need to submit to medical exams to get most individual policies.
As with other types of insurance, you pay a monthly premium until you make a claim; then, the insurance should start covering the costs you incur.
Unlike other types of insurance, though, you think of long-term care insurance in terms of days: how much coverage you’ll pay for depends on exactly how many days you want to be covered.
Ultimately, long-term care insurance pays for care in three situations:
In-home care: A family member or caregiver comes to the house or adult daycare
Assisted living: You live in an apartment but have a nurse on staff
Nursing home: You live in a semi-private or private room with skilled nursing staff
What qualifies for long-term care insurance?
In order to qualify for long-term care insurance, you need a “triggering event” to occur. To establish a claim, you need a doctor’s note to prove that you can’t do two of the six activities of daily living (referred to as ADL).
Long-term care insurance based on ADLs is a specific end-of-life type coverage.
There are six ADLs:
Ambulating: the ability to move around and walk independently
Personal hygiene: the ability to bathe and groom oneself, the inability to clip toenails or brush teeth
Continence: bladder and bowel control
Toileting: using the toilet by oneself
Long-term care insurance versus hybrid long-term care insurance
Long-term …read more
Source:: Business Insider
Dustin Johnson highlights | Round 3 | Genesis | 2021
In the third round of The Genesis Invitational 2021, Dustin Johnson recorded three birdies against 3 bogeys to remain even through 13 holes before play was suspended due to darkness. Johnson is 7-under-par for the tournament. The PGA TOUR returns to iconic Riviera Country Club for The Genesis Invitational. Tournament host Tiger Woods will be in attendance but won’t play as he is still recovering from a back procedure last month. World No. 1 Dustin Johnson and defending champion Adam Scott are among the headliners. Notables in the invitation-only field include major champions Brooks Koepka, Bryson DeChambeau, Collin Morikawa, Jordan Spieth, and Francesco Molinari, plus world No. 2 Jon Rahm. Two-time FedExCup winner Rory McIlroy looks to finally lift the trophy at Riviera after holding a piece of the lead Sunday a year ago only to fall to T5. In addition to reigning champ Johnson, FedExCup winners in the field include Justin Thomas, Brandt Snedeker, and Jim Furyk.