Whether you run an assisted living facility or a home care business, assisted living insurance is an important consideration. It can protect you from legal liabilities and provide financial protection if an employee makes a mistake or gets injured. Some of the most common types of insurance for assisted living facilities are general liability coverage, professional liability coverage, and commercial property insurance. Commercial property insurance protects your building, inventory, signage, and equipment. Business automobile insurance protects staff members who drive residents. Choosing the right policy can be confusing and overwhelming, so let’s look at some of the most common aspects of this type of insurance.
Exclusions from assisted living insurance
Assisted living facilities are gaining popularity, and insurance policies often cover such services. Unfortunately, some policies exclude these benefits, leaving you without coverage when needed most. Many of today’s policies are less restrictive than their predecessors. For example, policies issued to people with pre-existing conditions typically include a temporary exclusion. Depending on the state, this exclusion can last for up to six months or be permanent.
It’s essential to review exclusions in your assisted living business insurance policy to ensure comprehensive protection tailored to your facility’s needs.
Waiting periods
Assisted living insurance usually has a waiting period. This period begins when you first need long-term care and lasts for as long as your policy provides. While you may be able to start receiving benefits and coverage immediately after the waiting period ends, you should expect to pay for the first few months of care out of pocket. Waiting periods are not uncommon, but it’s important to know what to expect before you shop around.
To qualify for benefits, a person must be severely disabled or cognitively impaired and need at least two of the six activities of daily living. Many policies have a waiting period of sixty to ninety days. The waiting period for assisted living insurance is usually 60 to 90 days. Depending on the policy, you may need to pay more to start benefits after only 30 days or accept a 180-day delay. Some policies may require separate EPs for home care and facility care. While older policies may require separate EPs for each type of care, most newer policies have a single extended benefit period for both. Some policies also set a total dollar amount before benefits are paid.
Other limitations on the benefits provided by assisted living insurance can vary widely. Some policies require a waiting period for in-home care, while others require a long-term care facility. Some companies will waive this waiting period if you are unable to pay for your care within a specified period. The benefits of such insurance are usually greater than those of traditional insurance. Therefore, it is important to review each policy carefully. If you are unsure about what type of coverage you need, contact an agent today.
Assisted living insurance cost
Medicare will not cover the costs of assisted living, but it can help people with disabilities and low-income earners afford this type of care. The program covers 75 million low-income individuals in the U.S., including the elderly, disabled, and children. However, Medicaid application processes vary from state to state, and eligibility requirements can also vary. If you think you or a loved one may qualify for Medicaid, visit your state’s Social Security office or Medicaid assistance programs website to learn more. Medicare does not cover assisted living, so long-term care insurance will be required.
Another option is to pay out of pocket. This option is similar to paying rent on a regular apartment — you write a check every month. But the high cost of assisted living can make this an unaffordable option for many families. Even seniors with large retirement incomes may struggle to pay for it. If you plan, you can purchase long-term care insurance to cover assisted living expenses. This insurance policy will help you cover the costs of the care you need when your health begins to deteriorate.
The cost of long-term care is staggering. The average cost of a semi-private room in a nursing home in 2012 was $7,698. If you need home health care assistance for a few days, a one-bedroom assisted living facility will cost $46,000. The cost of assisted living insurance can exceed this amount – an individual could pay up to $37,000 over this time. The best option is to purchase long-term care insurance while you are young and in good health.
The cost of assisted living insurance depends on factors such as age, health, location, and the senior living insurance company you choose.
Exclusions
A growing number of policies now include international care benefits. However, there are some factors to consider before purchasing an assisted living insurance policy. Be sure to review the policy’s coverage outline before signing up. If you’re not sure what’s covered, check your policy’s exclusions to find out. You may also be surprised by what’s not included. An insurance company’s customer service representative can help you determine whether you’re covered.
To ensure comprehensive protection, carefully review exclusions in the best assisted living insurance plans and consult an expert for guidance.
