If your loved one purchased a long-term care (LTC) insurance policy years ago, it may be one of the most valuable assets they own — and one that many families forget to use. Long-term care insurance was specifically designed to cover costs like assisted living, memory care, and in-home care, and it can pay a substantial daily or monthly benefit toward those expenses.
What Does Long-Term Care Insurance Cover?
Most LTC policies cover care in a licensed assisted living facility, memory care community, or skilled nursing facility. Some also cover in-home care or adult day care. The key things to look for in a policy are:
- Daily or monthly benefit amount — how much the policy pays per day or month
- Benefit period — how long benefits will be paid (2 years, 5 years, lifetime)
- Elimination period — a waiting period (often 60–90 days) before benefits begin
- Inflation protection — whether the benefit amount has grown over time
- Qualifying triggers — usually needing help with 2 or more activities of daily living, or cognitive impairment
How to Use the Benefit
To begin receiving benefits, you generally need to:
- Notify the insurance company that you are entering a care facility
- Have a physician certify the qualifying need (ADL limitations or cognitive impairment)
- Complete the elimination period (paying out of pocket for the first 60–90 days)
- Submit monthly invoices from the care facility to receive reimbursement
What If I Can’t Find the Policy?
Some families know a policy exists but can’t locate it. Start by checking with your state’s Department of Insurance, which may have a policy locator service. You can also contact the insurance companies your loved one worked with over their lifetime to ask if any LTC policy is on record.
We work with LTC insurance regularly and are happy to help families understand how their policy applies to our homes. Call us at 785-494-2600.