Does Long-Term Care Insurance Pay for Home and Community Services?

elderly woman sitting in kitchen
Mary Sizemore
Mary Sizemore November 14, 2023

With over 25 years of experience, Mary shares her industry knowledge by helping agents and their clients navigate various insurance products. She also stays up to date on current products and trends to support, mentor, and guide her teammates.

It’s no secret that long-term care insurance (LTCI) has a major impact on the policyholder as well as their loved ones. Based on a recent study from AHIP, nearly $14 billion dollars in LTCI claims were paid in 2021, and the average amount per claimant was $170,490. See the full report here.

When considering the realities of growing older, most of your clients would prefer to age in place and stay in their homes as long as possible. Purchasing an LTCI policy will help them do just that.

Home Is Where the Heart Is

The comfort of home becomes more important as we age and is especially important for those dealing with a long-term illness. The best way to ensure that your client will be able to receive care at home or in the community is by considering a long-term care insurance policy. In fact, over half of LTCI claims begin as payments for home care services with only 23% for skilled nursing care.

LTCI Offers a Lifeline to Family

A long-term care insurance policy is not designed to replace a policyholder’s family. Instead, LTCI is meant to offer a helping hand to their loved ones. Not only can your client use the policy benefits for home and community services, but policies often include additional features that assist policyholders and their families when they become disabled and need care.

This may include a care coordinator, which is a licensed RN who will develop a plan of care, arrange for care, and monitor care. Additionally, home modifications (e.g., wheelchair ramps or shower grab-bars), home monitoring systems, and medical equipment are often included in LTCI policy benefits. Some carriers may also provide a cash benefit, which can be used to reimburse family members for providing assistance to the policyholder.

Have Your Clients Planned for Their Long-Term Care?

Most people understand the importance of planning for retirement, but many fail to recognize the need to plan for long-term care. Have you spoken to your clients about the costs of aging and longevity? Since the population is living longer than ever before, even those who are healthy today need to prepare for the costs associated with getting older. There are 53 million unpaid caregivers in the U.S., and many of them have taken on this responsibility because their loved ones did not have a plan for long-term care.

As their trusted advisor, you can help your clients develop a plan for their future care and purchase an LTCI policy that best suits their budget and goals. Schedule a call with us to get started!