It’s no secret that most of your clients prefer to age at home. Many of them are also likely to prefer their care to be provided by a trusted family member or friend. Long-term care insurance (LTCI) has evolved from when policies were first introduced, and insurance companies now recognize the importance of providing a benefit for informal care. Especially as the U.S. population ages and more individuals require care, informal care will be a crucial part of your client’s long-term care plan.
Read More: Does LTCI Pay for Home and Community Services?
Comparing LTCI Caregiver Benefits by Carrier
Here is a comparison of three traditional insurance carriers and what benefits they provide for informal or family caregivers:
| Company A | Company B | Company C | |
|---|---|---|---|
| Is a cash benefit included in the policy? | Yes | No, but can be added as an optional rider for an additional fee | No |
| How much cash is provided? | 25% of home health care maximum up to an initial maximum of $2,000 | 15% of the maximum monthly benefit while receiving home care services; or 10% of the maximum monthly benefit while receiving facility care | N/A |
| Does the policy offer caregiver training benefits? | Yes | Yes | Yes |
| If yes, how much? | Up to 2 times the maximum monthly benefit | Up to 2 times the maximum monthly benefit | Equal to 5 times the daily benefit amount |
When a carrier offers a cash benefit (either included in the policy or as an optional rider), policyholders can choose how they use the benefit, often using it to pay informal caregivers. This can be a critical selling point for your clients, so it’s vital that you explain the options available and ensure they understand the policy features, benefits, and optional riders that are available to them, especially as they pertain to informal caregivers. For more information on the plans available in your state, reach out to our team!
