Lo and Behold!

Once I was able to read the actual insurance contract, here’s what it really said…  Covered “nursing home care” included assisted living and intermediate nursing facilities and did not require 24/7 intensive nursing care.  It just required that a nurse be available on the premises 24/7 to provide that care, if needed.  So, the good news is that Mom not only could get a significant benefit to help cover part of the cost of assisted living, but also no longer needed to pay the high premium, as it is waived once she receives benefits.  That total amounts to a lot of money, over $100,000 in just the next few years.  And think about this - - if I had not gone through all this effort (which most people won’t and the insurance companies know it!) - - Mom would have been cheated out of her money!

There’s a Lesson Here

I’m not going to preach about the importance of obtaining long-term care insurance, that’s obvious.  Maybe you’ve already looked into it and didn’t get it.  Maybe you should look again.  You may not know that today there are many more kinds of long-term care insurance, other than the “traditional” policy Mom has, and these new ones may be easier to get, less expensive and have a feature which passes any benefits you don’t use to your loved ones after you’re gone.

The real lesson here is that, if you have a long-term care policy (or your parents do) you should have it professionally reviewed now, to be sure what coverage you have (or don’t!).  What’s the per day benefit?  What’s the waiting period before it kicks in?  Is there an overall cap on the amount of care paid for?  Will it cover in home care or assisted living?  How many activities of daily living (ADLs) do you need help with to qualify (such as bathing, dressing, eating, toileting, walking and sitting)? Can the premium go up over time or is there a cap or at least a company history of increases? 

There’s a lot to look at before you make an informed and intelligent consumer decision - - either about acquiring a new long-term care policy or keeping the one you have.  We can help.  Contact Robert, at our affiliated financial advisory firm of Pence Wealth Management and schedule a free meeting and analysis.  Call Robert NOW at (310) 329-3545!

Philip J. Kavesh
Nationally recognized attorney helping clients with customized estate planning guidance for over 40 years.