For seniors living in Washington, understanding long-term care insurance riders is essential for preparing financially for the future. It is not uncommon for seniors to require long-term care insurance or home care insurance, especially as their care needs change. Although this topic can feel confusing, it is critical that you understand the basics of long-term care insurance riders so that you choose the right option for your present and future situation.
Long-Term Care Insurance Basics
According to Washington state law, long-term care insurance is an insurance policy that provides coverage for at least 12 consecutive months to the insured person if they have a debilitating prolonged illness or disability. This insurance policy can either be a contract or a rider depending on what you choose.
To better understand if long-term care insurance is the right fit for you, you need to understand what this policy will cover. LTC insurance should cover things like diagnostic, preventative, rehabilitated, maintenance, personal care, or therapeutic services if they aren’t in a hospital’s acute care unit. This insurance policy will also start to pay benefits when the insured person is no longer able to do two specific activities independently on a daily basis, such as:
- Dress
- Eat
- Use the restroom
- Bathe
- Control their bladder or bowels
- Get out of a chair or bed
It can be very overwhelming to understand LTC insurance and what you could qualify for in Washington.That is why it is highly recommended that you hire a long-term care planning attorney who can help you choose the right policy to fit your needs. They can identify what you qualify for, the type of coverage you need, and the insurance policy with the best rate.
Understanding Riders and Long-Term Care Insurance in Washington
Now that you understand what long-term care is, we need to discuss insurance with a long-term care rider. Some life insurance and annuity policies will include long-term care insurance as a rider, but this doesn’t always qualify as long-term care insurance. For this to qualify as long-term care insurance, the rider has to meet specific benefit requirements for the state of Washington.
The main requirement for a long-term rider to qualify for LTC insurance is that it has to pay a benefit specifically to cover long-term care services. It cannot provide a lump sum or payments that can be used at the insurer’s discretion; it has a specifically for long-term care services.
To qualify the rider cannot be an accelerated death benefit as this will not cover long-term care services. However, accelerated death benefits can sometimes qualify as LTC insurance if they are part of the riders name, such as it being an acceleration of death benefit for qualified long-term care services.
What is a Long-Term Care Insurance Inflation Rider?
Another detail about LTC insurance riders that Washington residents need to be aware of is the long-term care inflation rate. Some insurance with a long term care rider will also provide insurance inflation protection which can increase the value of the benefits to keep up with the current inflation. Under a long-term care inflation rider the benefit levels will increase or decrease so that you maintain the same coverage no matter what the economy is doing.
Understanding what inflation protection in insurance is can help you pick a policy that provides the most security. However, it is important to keep in mind that having inflation protection does not automatically mean that you will never face increases in premiums. It provides a bit more stability and security but it will usually result in an additional cost to your overall policy.
There are a few methods you can use to safeguard your insurance policy from inflation that may not always include inflation protection. That is why you should discuss your options with a long-term care insurance attorney, as they have experience in this area and can help you choose the best coverage option for your situation. For instance, older individuals may benefit more from purchasing the largest daily benefit they can than they would from getting an actual inflation protection rider.
Who Needs Long-Term Care Insurance?
You may feel hesitant to get LTC insurance if you aren’t sure if this is something that is suitable for your situation. The reality is that this is something that many people could benefit from as they age and require more and more daily care. Long-term care is costly, especially if your needs progress, which is why LTC insurance is usually a necessity.
Long-term care insurance is mainly utilized by the elderly who may have progressing disorders such as Alzheimer’s disease or dementia or require increasing daily care due to limited mobility. Many seniors use this insurance to help them pay for home care, nursing home care, living in an assisted living facility, or using adult daycare services.
However, this is an insurance coverage option that can also be utilized by people who are not necessarily aging. It is a good option for those who have chronic medical conditions that could lead to high medical and daily care expenses. You may need the help of a nurse who comes to your home on a daily basis or you may be living in an assisted living facility. It is also a good coverage option for those who have disabilities.
If you are on the fence about whether or not you should get a long-term care insurance rider, you should consult a long-term care planning attorney in Washington. They will have experience with long-term care coverage and can help you find a policy that fits your needs and your budget. They can also help you navigate the complexities of your coverage options, choosing a policy that you can rely on.
Get in Touch With a Long-Term Care Planning Attorney Today
To get a better understanding of insurance with a long-term care rider, reach out to an experienced long-term care planning attorney at Legacy Law Group in Washington. Contact us today at 509-315-8087 to speak with one of our attorneys to get the process started.
