More than two-thirds of new long-term care
insurance policy claimants receive benefit payments covering care in their own
home according to the American Association for Long-Term Care Insurance.
“People mistakenly associate long-term care
insurance exclusively with nursing home care,” explains Jesse Slome, director
of the organization. “When care is needed, people prefer to remain in the
familiar surroundings and comfort of their own home. Long-term care
insurance can cover costs associated with care services provided at home.”
A just-concluded analysis of claims paid by
leading insurers in 2019 finds that 70 percent of new claims began with the
policyholder receiving care at home. “This represents an increase from 52
percent (2014 analysis),” Slome notes. ”The majority of claims began and
also ended with the policyholder receiving care in their own home.”
According to the Association, in 2019 the
nation’s long-term care insurance companies paid $11 billion in benefits to some
310,000 individuals. “While sales of traditional LTC insurance policies
have declined in recent years, claims paid have increased 35 percent from $8.1
billion paid in 2015.”
In 2019, fewer than one in 10 new claims began
with care provided in a nursing home according to the Association’s
study. The balance, around 18 percent commenced with care in an assisted
living setting. “Covid-19 has made individuals increasingly desirous of
the ability to remain at home and more insurance professionals are focusing on
the home care benefits available,” Slome says.
“Cash benefits that can pay for non-certified
caregivers, including a family member, are one of the options currently
offered,” explains George Mellendorf, President of LTC
Solutions, a national distributor of individual and multi-life
long-term care insurance headquartered in Cape Coral, FL. “Policies that
can pay immediate benefits for home care without having to meet the standard
90-day elimination or deductible period are increasingly popular.”
Seven million Americans currently have
long-term care insurance protection according to AALTCI. “For less than
$100 a month, a 57-year-old male can currently purchase a policy that pays
$5,100 monthly for home care services when he reaches age 85,” Slome
notes. “If home care is needed for two years, the policy would pay out
over $122,000 in total benefits.”
Newer policies available offer a number of
consumer-friendly features Mellendorf points out. “Some permit increasing
the future benefit amount by changing the inflation growth factor,” he
adds. “Access to a separate pool of money to pay for home modifications
such as bathroom grab bars or ramps can make it easier to remain at home as one
ages.”
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