There are typically three primary ways in which older adults cover long-term care costs. Many older adults eventually apply for Medicaid benefits, which can pay for in-home nursing support or a room in a nursing home. Those who saved adequately during their working lives can potentially pay for their costs out of pocket using their own resources. Others rely on long-term care insurance policies.
People beginning to plan for retirement and thinking about their future expenses may find themselves contemplating a long-term care policy. What benefits may inspire people to carry long-term care coverage?
Policies can cover costs that Medicare does not
Although Medicare is an insurance program for retired adults, it does not cover some of the biggest expenses incurred by retired individuals. Any long-term care services, including nursing home costs, are typically ineligible for Medicare coverage.
Long-term care insurance helps augment the limited coverage available through Medicare. Policyholders can pay premiums for years to ensure they are eligible for benefits when they are older and in need of daily support.
Typically, there are limits to long-term care coverage, and policy premiums do increase as the age of enrollment of an older adult increases. For those who have the resources to continue paying their premiums indefinitely, long-term care insurance can help ensure they have support and comfort as they age. For those who may struggle to afford policy premiums, other forms of long-term care planning might be necessary.
Those who do have coverage may need support, especially if an insurance company unfairly denies their claim. Older adults who know their rights and have support when selecting a policy and filing claims for benefits are less likely to face benefit denials that leave them struggling to cover their costs.
