Many Americans assume that Medicare will provide assistance for long-term care options, but that is very rarely the truth. In most cases, Medicare only assists with extended care if it follows a medical procedure and the care lasts weeks or months, not years. If you have a family member who may need long-term care in the future or you have a family history of memory conditions, purchasing long-term care insurance may be the best option for you. But what insurance options are available?

Insurance specifically tailored for long-term care offers a financial cushion that traditional health insurance or Medicare may not provide. This includes coverage for personal care services, assisted living and memory care, and support for daily activities. Given the specialized nature of memory care, which requires more intensive supervision and therapy, the potential benefits of a dedicated insurance plan cannot be overstated.

Types of Insurance Policies:

Long-Term Care Insurance: This policy is specifically designed to help cover the financial costs of long-term care for seniors and older adults, including assisted living and memory care facilities.
Life Insurance with Long-Term Care Riders: These policies allow you to use some of your death benefit for long-term care if needed, offering flexibility in planning for the future.
Certain Health Insurance Policies: Some private health insurance policies offer riders or specific coverage options for long-term care, but these can vary widely in terms of coverage and eligibility. They may only provide interim, stop-gap care instead of holistic coverage.

Choosing Insurance To Help Cover Assisted Living and Memory Care Costs

Working with a local insurance agent or shopping online will help you get the best rates and find what you need, but there are some general considerations to keep in mind to make sure your policy does not disappoint you in the future. Often, you will have to weigh the benefits of a more comprehensive policy against the additional costs.

Considerations When Choosing a Policy:

Extent of Coverage: Evaluate the insurance’s comprehensiveness. Does it cover all levels of care, including potential transitions from assisted living to more intensive memory care units?
Eligibility Requirements: Make sure to fully understand the policy’s eligibility criteria, especially for memory care, which often requires specific diagnoses.
Flexibility: Consider whether the policy offers flexibility in choosing facilities and the types of care covered.
Duration of Benefits: Look into how long the benefits last. Some policies offer lifetime coverage, while others may cap benefits at a certain number of years.
Cost vs. Benefit: Balance the cost of premiums against the benefits provided. Policies with higher premiums might offer more comprehensive coverage, which could be more beneficial in the long run. Many policies can also increase their monthly premium over time.

Choosing the right policy is also an important decision when made as part of a greater plan. The desire to protect and pass on your legacy is at the heart of estate planning. Insurance for assisted living or memory care helps reduce the financial costs associated with care by letting insurance provide coverage should you need long-term care. Ideally, you won’t have to dip into the assets meant for your beneficiaries to pay for care.

Whether your or a family member’s future will involve limited assisted living or memory care, it pays to plan ahead and make financial moves to ease the process later on. But beyond having the funds to pay for a facility, you have to trust that it is the right place to call home. Contact A Banyan Residence today to schedule a tour of our facility and see what we offer.