Long-Term Care Insurance for Annapolis-Area Seniors: What to Know

It's common to feel overwhelmed while looking for long-term care options for an elderly parent or family member in Northern Anne Arundel County. According to a report published by the United States Department of Health and Human Services, at least 70 percent of Americans over the age of 65 will need long-term care at some point in their lives.

Planning for long-term care costs is essential if a family member is in a position where they will need such assistance. Because the majority of long-term care providers mainly provide help with personal care and Activities of Daily Living (ADLs), the services they provide are often not covered by health insurance, Medicare, or Medicaid.

A long-term care insurance policy, however, may assist reduce the out-of-pocket cost of caring for your loved one. Read on to find out what residents in Annapolis, Glen Burnie, Millersville, Pasadena, Crownsville, Arnold, Severna Park, and the rest of Northern Anne Arundel County need to know about how long-term care insurance works.

What Families in Annapolis, MD and Surrounding Areas Should Understand About Long-Term Care Insurance

Long-term care is a service that meets the health and personal requirements of those over 65 or with a chronic disease or disability that impacts their ability to live independently. Long-term care often involves assistance with ADLs including cooking, bathing, dressing, housekeeping, errand running, food shopping, pet care, and other tasks that do not need medical attention.

Genworth estimates that the monthly cost of long-term care in Maryland ranges from more than $5,000 for home care to more than $12,000 for a private room in a nursing facility. Most long-term care recipients will need this level of support for at least five years, so the costs can add up. Many families end up paying out of pocket for long-term care costs; however, a long-term care insurance policy can make this level of care more affordable. According to the National Association of Insurance Commissioners, you should encourage your loved one to invest in a long-term care insurance policy if they have a good income or assets that they'd rather not use to pay for their care in the future, if you feel confident they can afford the insurance premiums, and you're concerned that you or your family may need to pay for your loved one's care out of pocket.

What is Long-Term Care Insurance and How Does it Work?

Long-term care insurance is a policy that helps pay for the expenses associated with providing long-term care to a person. An insurance policy like this can be useful for seniors in Northern Anne Arundel County since it can preserve their assets and reduce the financial stress associated with paying for long-term care.

Long-term care insurance often covers personal care requirements including dressing, bathing, feeding, and mobility assistance. Your loved one's coverage may also include services like light cleaning, laundry, medicine reminders, and errand running, depending on the provider and policy type.

Your loved one should contact their long-term care insurance provider as soon as they recognize the need for ongoing care. Before the insurance can begin to reimburse the cost of long-term care, the insurer must approve your plan of care. When making a claim, your family member may need to present documentation from their doctor and submit to an assessment by a nurse.

After receiving the care they need during that time period, their insurance policy will begin to reimburse the expenses incurred. There might be a "elimination period" in which your loved one must pay for care out of pocket before the insurance begins paying for it. The elimination period might be for 30, 60, or even 90 days, depending on the circumstances.

A long-term care insurance policy will cover expenses in one of two ways: expense-incurred, meaning the policy will reimburse expenses for the cost of care or the daily benefit (depending on which is cheaper); or indemnity, meaning the policy will cover the full daily benefit regardless of how much their care costs.

How Much Will Long-Term Care Insurance Cost?

The price of long-term care insurance for your loved one will vary depending on the insurance company they choose and their personal circumstances at the time of purchase.

Here are some factors that will decide how much your loved one's policy will cost:

Amount of Coverage

There will be an increase in premiums if your loved one opts for additional perks from their policy, such as a greater maximum on daily or lifetime benefits, shorter elimination periods, cost-of-living protection, and so on.

The Insurance Provider

When shopping for long-term care insurance, it's in your best interest to compare your options. Rates will vary from one provider to the next.

Your Loved One's Age and Health

To save money on long-term care insurance, it's best to get a coverage while you're in your 50s or 60s. In fact, several insurance providers refuse to cover applicants above the age of 75. In addition, those who are in good health often have lower premiums. In fact, there's a greater risk of being denied coverage if the applicant has preexisting conditions or already needs help with ADLs.

Gender

Women usually pay more for long-term care insurance because they tend to live longer than men and are more likely to make an insurance claim.

To get an idea of how much your loved one will pay for long-term care insurance, the American Association for Long-Term Care Insurance estimates that a healthy 55-year-old man would pay around $1,700 per year for a policy with a lifetime benefit of $164,000, while a healthy 55-year-old woman would pay around $2,675.

It's important to remember that the premiums for a long-term care insurance coverage might increase over time. However, the benefits may grow with time, as well. For instance, a $164,000 long-term care insurance policy with a 3 percent annual compounding rate may increase to $386,500 in 30 years.

Should Annapolis-Area Seniors Consider Home Care for Their Long-Term Care Needs?

There are many options available for seniors in Northern Anne Arundel County who need long-term care. Although residential care were once preferred options, there's an emerging demand for long-term home care. In fact, about 65 percent of long-term care recipients receive the support they need in their own home.

With home care, families may ease their burden by not having to uproot their loved one and move them to a new environment. In addition, seniors who get long-term care at home often receive the care they need for a longer period of time than seniors who move to an assisted living facility. Home care is a better alternative for seniors who may have difficulty adapting to new environments owing to health concerns that influence their memory and cognition. It is also a better option for seniors who have renovated their homes for reasons of safety and accessibility.

Why Choose Long-Term Care from Visiting Angels Annapolis?

Visiting Angels Annapolis is the best choice if you need a dependable home care agency for your loved one's long-term care requirements. We have been providing in-home care and assistance to seniors in Annapolis, Glen Burnie, Millersville, Pasadena, Crownsville, Arnold, Severna Park, and the neighboring communities of Northern Anne Arundel County for over 21 years.

While Visiting Angels Annapolis does not accept Medicare or private health insurance, we try our best to keep our costs low so that we can help as many families as possible. One of the things that sets us apart from other local home care agencies in the Annapolis area is our dedication to provide individualized, one-on-one care for each of our clients. This means that we will collaborate with you to develop a care plan that is tailored to your loved one's specific requirements and lifestyle. This not only helps your loved one maintain their freedom, but it also makes long-term care more cost-effective because you'll only have to pay for the care your loved one actually needs.

Our caregivers can help your senior loved one with:

Long-term care from Visiting Angels Annapolis can be highly beneficial for seniors who have memory-related issues due to dementia or suffering a stroke, as well as seniors who have trouble with everyday tasks due to symptoms of chronic illnesses. You can trust the caregivers from Visiting Angels Annapolis to ensure the safety and comfort of your elderly loved one in their own home.

To schedule a free in-home consultation, call our Millersville, MD office at 410-505-5141 or fill out our contact form!