Arkansas Long Term Care
Long Term Care Insurance is becoming an increasingly popular individual health insurance product in Arkansas. According to the U.S Census, 15.4 percent of the population in Arkansas is over the age of 65, which is about 1.3 percent higher than the percentage of the national population that is over this age.
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With the population of Baby Boomers in Arkansas growing and the life expectancy growing for individuals with access to modern healthcare, the need for Long Term Care insurance has continued to rise. Read this guide to Arkansas Long Term Care Insurance, and learn what it covers and how to find the best rates.
Long Term Care Insurance in a Nutshell
Long Term Care Insurance, which is often referred to in the industry as LTC, is a specialty form of health insurance that covers costs and claims that are not traditionally covered by a standard health insurer.
Rather than covering medical treatment costs and the costs incurred from hospitalization following an illness or injury, LTC covers long-term care services in a home setting or in a custodial care setting outside of the home.
Who is this Coverage For?
It is easy to assume that only seniors in Arkansas have a need for long-term care services, but this is not always the case.
While seniors who are over the age of 65 are far more likely to need long-term care than people in other age demographics, there is still a need for personal and custodial care in all age groups.
The longer care is needed, the more financial impact it can have. This is why it is so important to buy LTC coverage at a young age before it is needed. After all, people who need LTC insurance usually cannot find an insurer willing to issue a policy.
Anyone who has the goal not to burden others has a need for LTC.
The NPR has reported that only about 8 million out of the 313 million people in this nation carry coverage. It is estimated that about 11 million adults have a need for some type of long-term care services each year.
This means that several million people are paying for care out of pocket, which can cost at least $87,000 per year. If you do not want to spend your nest egg on staying comfortable at any point in your life, and you do not want your children caring for you and their own children at the same time, you have a need for coverage.
What Type Coverage Does LTC Provide and How Does it Differ from Alternatives?
Anyone who is considering buying any type of insurance product that they are not familiar with should know what the financial product covers before they make a commitment.
In fact, LTC policies are a huge commitment because you are buying the coverage with the intentions of paying these premiums for several years.
While policies can be changed, it is ideal to buy a policy with the coverage limits and riders you need from the start so that the premiums are lower for the life of the policy.
What Does Arkansas Medicare or Health Insurance Cover?
It is important that you know that Medicare has very strict limits on what types of services are covered.
Under your Medicare policy, only medically necessary acute care is covered. Medicare will not cover the largest part if LTC service, which is custodial care. There is also limited coverage for nursing home care which will only pay for the cost of care in full for the first 20 days.
Typically, the same types of coverages are offered by traditional health insurance contracts, which include doctor visits, hospitalization, prescriptions, physical therapy and other short-term services that will help you recover and regain function after a fall or accident.
Long-term care insurance is a specialty product that fills in the gaps and provides cover where medical insurance does not.
How Does LTC Coverage Differ from Disability Insurance Coverage in Arkansas?
Many people are not familiar with the difference between disability insurance and LTC cover, but knowing the difference is important.
Disability insurance may be a group insurance policy or individual policy that will help you replace your income if you suffer from a medical or physical impairment that makes you unable to engage in gainful activity.
Coverage may be provided for short-term or some long-term disabilities depending on the policy that you carry.
Each policy is designed to pay you a percentage of your income when you suffer from a covered disability.
This money can be used to pay rent, utilities, medical bills and whatever else needs to be paid for the month. An LTC policy provides reimbursement or payment to a care provider so that you can live comfortably while you are suffering from a long-term physical or mental impairment rather than replacing your income.
What services are considered covered long-term care services?
Now that you know the gaps that exist when you carry common alternatives, it is time to learn why Arkansas Long Term Care policies are often the answer.
Failing to have coverage for the custodial services can force seniors to spend down their assets just to qualify for coverage based on income and asset guidelines. It can also lead to a poor quality of life in an overpopulated and understaffed facility.
You deserve to feel comfortable in your own space or in a new space that is well-maintained.
Here is a breakdown of the types of services that will be covered under an Arkansas Long Term Care Insurance policy:
- Cost for home health aide
- Cost to live in assisted living facility
- Adult Daycare costs
- Costs incurred for assistance with Activities of Daily Living
- Respite care
- Hospice care
- Occupational, speech and rehabilitation therapy
Buying LTC Cover in Arkansas
You do not need to be an expert on Long Term Care Insurance to find the right policy to suit your needs.
There are plenty of resources that you can use to your advantage, including this guide, to push you in the right direction when you are looking to make a smart and budget-conscious purchase. Making an educated and informed decision is key.
Here are some commonly asked questions and the expert answers that will help you along the way:
How do you qualify for long-term care insurance?
Qualifying for LTC cover is a lot like qualifying for disability insurance or life insurance. You must fill out a detailed application and answer underwriting questions before any policy offer will be extended.
The underwriter will use your answers on the application, age, gender, health history, and medical records to determine how much to charge you and whether or not you will be offered coverage at all. This is why the earlier the better when applying for a policy.
How are rates calculated?
Another reason why you should buy coverage early is because the premiums are calculated based on not just your health, but also your age at the time of application and your estimated life expectancy.
The younger you are, the less of a risk you are of filing a claim but the greater your need for coverage. Once you qualify for coverage, your rates will stay the same based on the age you were at the time of the application.
How much coverage should you purchase?
Deciding how much coverage that you need to purchase can be difficult.
You need to consider the costs of care in the state, what setting you prefer to receive care in, how much you would like to spend out-of-pocket on care, and your monthly LTC insurance budget. Most companies offer benefits between $50 and $250 per day.
You must choose a benefit period, which determines how long you will receive benefits.
The dollar amount and benefit period can increase your premium. You may also want an inflation rider, which can also increase the premium but cover the cost of inflation when you need benefits to be paid out. Your age at the time of application may affect how much coverage you need and can afford.
What are the costs of care in Arkansas?
In Arkansas, the average cost of home care was $3241 per month in 2012. The average cost for care in a nursing home was $4563. These numbers are projected to jump to $6053 and $11,398 in 2037.
The cost of care is only projected to increase. With the population in Arkansas aging at an alarming rate, it is critical to buy financial products to protect your quality of life and your legacy.
Comparing rates is the most effective way to find an affordable plan that you can pay regularly until you need care. Start comparing rates with top-rated insurers and find a quality plan that gives you peace of mind.
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