Using Your LTCI Policy
If you or your loved one had the foresight to purchase a Long-Term Care Insurance (LTCI) policy years ago, it can be a massive financial relief when the time comes for assisted living, memory care, or in-home care.
How Does It Work?
LTCI policies are designed to cover the costs of custodial care (help with daily activities) that Medicare does not cover. Every policy is different, so it’s crucial to read your specific contract.
Key Policy Terms to Understand:
- Elimination Period: This is a waiting period (often 30, 60, or 90 days) during which you must pay for care out-of-pocket before the policy begins paying benefits.
- Daily/Monthly Benefit: The maximum amount the policy will pay out per day or month.
- Benefit Period: How long the policy will pay (e.g., 2 years, 5 years, or lifetime).
- Triggers: The criteria that must be met to activate the policy. Usually, this requires certification from a doctor that the policyholder needs help with at least two Activities of Daily Living (ADLs) or has a severe cognitive impairment (like Alzheimer’s).
Activating Your Policy
To start receiving benefits, you will need to file a claim. The insurance company will require medical records and an assessment to verify the care needs. Once approved, the policy typically reimburses you for the care costs up to the benefit limit.
If you have an LTCI policy, let our advisors know! We can help you find communities that are accustomed to working with insurance providers and can easily provide the necessary invoicing and documentation.