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Long-Term Care and Insurance

Long-term insurance is used if your bleeding disorder or any associated illnesses, like HIV or Hepatitis C, take you out of the work force for an extended period of time. Long-term insurance comes in two forms: long-term disability and long-term care insurance.

  • Long-term disability insurance. This type of insurance is usually available to people through their employer; and it expires at age 65, if not before.
  • Long-term care insurance. This type of insurance may not expire until death and it covers you once you’re no longer able to live independently.

Which should you get? Both, if you can afford it and are eligible. Policies are usually offered by an employer or an affinity group.

For information on long-term disability and long-term care insurance, go to Long-term Disability and Long-term Care Insurance: Know Your Other Health Insurance Options.

Public Insurance Programs: What You Need To Know

Medicare typically covers short-term stays in nursing homes for those over age 65, after a hospital stay, but only if you quality and you must meet certain qualifications to be eligible. Be sure you read your policy before being placed because not all homes accept all patients. Ask your insurer and health care provider before considering this option.

Medicaid is a state-based program where eligibility is income based (although some health conditions apply), so you will need to have your finances evaluated to determine eligibility. Some people find they must eliminate some of their savings and assets in order to qualify for Medicaid. Coverage for services such as limited nursing home care, some home care services, and assisted living facilities is highly variable and depends on your state of residence and your insurance provider.

What to Look for: Long-term Disability Insurance

  • Benefits until age 65. Policies have different lengths of coverage. Typically they are five years, 10 years, or until age 65. Look for coverage until age 65.
  • Guaranteed renewable. You want to be sure that any long-term disability policy is non-cancelable and guaranteed renewable. This will allow you to renew the policy at the end of each premium term (usually annually), and during the new term the premium rate cannot be changed and the policy cannot be cancelled. Read the fine print on any policy you consider.
  • Cost-of-living rider. Look to add this rider to your policy. It allows the policy’s value to rise with inflation.

What to Look for: Long-term Care Insurance

  • Type of coverage. While expensive, some long-term care insurance can cover home care and extended stays in assisted living facilities and nursing homes necessitated after hospital stays for example when severe bleeds, surgery, or traumatic injuries occur.
  • Benefits. Know in advance if your plan covers long-term care facilities such as nursing homes, assisted living facilities and in-home care. These facilities usually charge based on the amount of time (days/months/years) in care.
  • Waiting periods. Some insurance companies allow various amounts of waiting time (30, 60, or 90 days) before a policy will begin paying benefits after someone is eligible to receive them. Understand how the company calculates the waiting period and how it affects your premium.
  • Cost-of-living coverage. The plan should inform you of potential increases in monthly costs at long-term care facilities over the life of the policy. Some companies offer inflation coverage which increases your benefits after a period of time.
For more information on long-term care insurance, go to American Association for Long-Term Care Insurance Information Resource Center.