If you have a parent or relative who suffered a setback when a critical illness struck and you were suddenly thrust into a situation to assist with care out-of-pocket, there is a better solution.  Let’s talk about how living benefits can meet this need.

How long-term care insurance works

The purpose of long term care insurance is to cover costs of special needs when the insured cannot perform 2 out of 6 daily living activities:

  • Bathing.
  • Incontinence
  • Dressing.
  • Eating.
  • Toileting (getting on or off the toilet).
  • Transferring (getting in or out of a bed or a chair)
  • or the insured suffers from dementia or other cognitive impairment.

How to obtain a long term care policy

To secure a policy, the insured has to fill out an application and answer health questions. The insurer may ask to see medical records if the applicant answers “yes” to having certain health conditions or medical history in that application.  Some responses my require an interview by phone or face to face.

The applicant my choose the amount of coverage desired.  The policies usually cap the amount paid out per day and the amount paid during your lifetime.

When the insurance company approves coverage and they issue the policy, the insured begins paying premiums.

How to file a claim

When the insured needs care and wants to make a claim, the insurance company will review medical documents from the primary care physician (and/or Specialist treating a particular ailment).  The company may send a nurse to do an evaluation.  Before approving a claim, the insurer must approve the “plan of care.”

Under most policies, the insured has to pay for long-term care services out of pocket for a certain amount of time, such as 30, 60 or 90 days, before the insurer starts reimbursing for any care. This is called the “elimination period.”

Collecting benefits

The policy starts paying out after the insured is eligible for benefits.  Benefits cover up to a daily limit for care or until the costs reach the lifetime maximum.

Some companies offer a “shared care” option for couples when both spouses buy policies. This allows the covered clients to share the total amount of coverage and draw from a pool of benefits before they reach the limit on the policy.

Cost of Long Term Care vs Life Insurance with Living Benefits

The average long term care policy will cost a 55-year old male in good health approximately $1200 per year.

The great news I have is:

Accelerated Living Benefits on Life Insurance policy provide a payout just the same when the insured cannot perform 2 out of 6 of the ADL’s (activities of daily living) for the same 90 day period.  But at NO ADDITIONAL PREMIUMS.

This is a true benefit.

We need to discuss how I can add living benefits to your existing life insurance coverage.

How will we do this?

We start with a needs analysis to determine how much life insurance will fit your current and future needs.  We can set up a term or a universal life policy.  The accelerated living benefit riders that cover terminal, chronic, critical illness or injury will not cost any additional premium.





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