Long term care insurance for caregivers needing in-home care relief

The increasing need for in-home care is irrefutable. Elderly people and those with disabilities or chronic illnesses require help with activities of daily living such as dressing, transferring, toileting, hygiene, feeding, as well as help with transportation and meal preparation.

A recent report from AARP shows that the cost of unpaid caregiving provided by family and friends was $450 billion in 2009, rivaling the cost of the entire Medicaid program. While some caregiving is provided out of love and compassion, most of those unpaid care hours result from a lack of funds to cover the cost of hired in-home care.

Unpaid caregivers in California spend, on average, over 18 hours a week helping their loved one. This takes a great toll on caregivers, which are much more frequently ill because of the stress and because they may ignore their own health.

Paying for in-home care is primarily covered by private funds and by long term care insurance.

The average hourly cost of a caregiver is around $20/hr.

• Few families have long term care insurance because yearly premiums can be in the $1,500 to $3,000 range. • Be aware that some older policies do not cover caregiving in the home (home care), but most have a daily in-home care cap (e.g., $100 a day; the usual range is from $40 to $200 a day) or a monthly expense cap ($2,500 a month).• It is critical to understand these caps to avoid paying out of pocket. If the service need is costs more than what is covered by the insurance, then the difference can paid out of pocket.

Long term care beneficiaries usually have difficulty understanding (or remembering) the way the insurance policy works.Frequently, they get surprised – even upset – about having an ‘elimination period’ or ‘wait period’ during which the policy does not cover the expenses.

Some long term care policies do not have a wait period for in-home care (even when there is a wait period for assisted living) or the wait period does not apply if the client is in hospice.

Since many people obtained their policies many, many years ago, the insurance agent that sold them policy may no longer be around, and they have to obtain information from the insurance company, which is not always an easy process.

• The most significant element of this discussion is peace of mind. • Reaching the point in life when you need a caregiver to assist with activities of daily living is never easy. • At our agency, we observe the distinct sense of relief for those parents with the foresight or wherewithal to have purchased long term care insurance.

They and their children enjoy piece of mind at least as it relates to the financial burden of long term caregiving.If at all possible, consider leaving that heritage to your children. Both you and they will breathe easier when the time comes.

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