As our population ages, more and more people are finding themselves in the role of caregiver for an elderly loved one.
Often, this means providing long-term care, which can be costly. Many wonder if long-term care insurance will help to offset these costs by paying family caregivers.
The answer is maybe. It depends on the policy and the insurer. Some policies will reimburse caregivers for a portion of their expenses, while others will not cover them at all. It’s important to read your policy carefully and understand what is covered before assuming that your long-term care insurance will help pay for your caregiver services.
That said, even if your policy doesn’t cover caregivers specifically, it may still provide some financial assistance. For example, many policies will pay for home health aides or nursing services that can help lighten the load for family caregivers. And some policies offer a “respite care” benefit that can provide temporary relief from caregiving duties – giving you a much-needed break!
If you’re considering purchasing long-term care insurance or already have a policy in place, be sure to ask about coverage for family caregivers – it could make all the difference when it comes time to needing assistance yourself down the road.
Most families these days are two-income families. And that’s great—for the family finances. But what happens when one member of the family needs long-term care?
Nearly 60 percent of family caregivers are employed while they provide care, according to a recent report from the National Alliance for Caregiving and AARP. The report, which surveyed a representative sample of 1,508 employed caregivers, found that these caregivers are “more likely to experience work-related problems such as missing work, arriving late, or leaving early because of caregiving responsibilities.”
In addition, employed caregivers are more likely than non-caregivers to say that their health has suffered, their work has suffered, or they’ve had to quit their job because of their caregiving duties.
So what can families do to ease the financial and caregiving burden on working caregivers?
One option is long-term care insurance (LTCI). LTCI policies reimburse policyholders for a portion of the costs of long-term care services, which can include in-home care, adult day care, and assisted living.
Some policies also offer a “caregiver benefit” that pays a specified daily amount to a designated caregiver—usually a family member—to offset the costs of lost wages and other out-of-pocket expenses incurred while providing care.
The National Association of Insurance Commissioners (NAIC) offers this advice to consumers considering LTCI:
• Shop around. LTCI policies and benefits vary widely, so it pays to compare offers from different insurers.
• Be sure you understand the policy. LTCI policies are complex, so make sure you understand the details before you buy.
• Know the limitations. LTCI policies have limitations, including exclusions and benefit caps.
• Consider your other options. LTCI is just one way to pay for long-term care. You may also be able to use life insurance, annuities, or government programs such as Medicaid.
If you’re considering LTCI, be sure to talk with your financial advisor, insurer, or state insurance department for more information.
