What Is Long-Term Care Insurance and How Does It Help Cover In-Home Care

As we age, the need for long-term care becomes more likely, whether due to chronic illness, disability, or simply the challenges of aging. Many families are surprised to learn that traditional health insurance or Medicare doesn’t cover most long-term care services. That’s where long-term care insurance (LTCI) comes in.

What is Long-Term Care Insurance

Long-term care insurance is a type of policy designed to help pay for services that assist individuals with daily living activities, such as bathing, dressing, eating, and mobility when they are unable to do so independently. These services can be provided at home, in an assisted living facility, or in a nursing home.

Unlike standard health insurance, LTCI focuses specifically on nonmedical, personal care needs over an extended period. Having a policy in place can help reduce the financial burden on families and ensure that a loved one receives the proper support when the time comes.

How It Covers In-Home Care

One of the most valued benefits of long-term care insurance is its coverage of in-home care services. Many people prefer to stay in the comfort of their own homes for as long as possible, and LTCI helps make that a reality.

Here’s what it typically covers for in-home care:

• Personal care assistance (bathing, grooming, toileting)
• Home health aide services
• Skilled nursing care (in some cases)
• Physical, occupational, or speech therapy
• Homemaker services (like meal prep or light housekeeping)
• Care coordination and assessments

Coverage details vary depending on the policy, so it’s important to read the terms or speak with an insurance advisor.

When Does Coverage Begin?

Most LTCI policies have a waiting period, also called an “elimination period,” which is typically 30 to 90 days after a person is deemed eligible for benefits. A person usually qualifies when they need help with two or more activities of daily living (ADLs) or have a cognitive impairment.

Why It Matters

Without coverage, in-home care can become expensive over time. According to recent data, the cost of home health aide services can range from $25 to $35 per hour or more, depending on location and level of care needed.

Long-term care insurance provides peace of mind, knowing that you or your loved one can receive care without depleting savings or becoming a financial burden on family members.

If you or a loved one is exploring in-home care options and wants to learn more about how long-term care insurance fits into the picture, feel free to contact us. We’re here to guide you every step of the way.