When your senior loved one is diagnosed with dementia, it’s normal to have concerns about how you’ll pay for memory care support. Dementia support and memory care communities aren’t cheap, but they’re absolutely necessary to give your senior loved one the highest quality of life. If you’re concerned about how to pay for memory care for your loved one, our Terra Vista team is here to help. Learn how long term care insurance can help and how you can use it to pay for memory care for your loved one.
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What is Long Term Care Insurance?
Long term care (LTC) insurance is an insurance policy designed to cover costs not paid for by health insurance, Medicare, or Medicaid, like support with activities of daily living. Activities of daily living (ADLs) include tasks like dressing, bathing, eating, medication management, etc. – all of which can be challenging for seniors who are diagnosed with dementia.
Long term care insurance can cover in-home care, memory care programs, and assisted living communities depending on the policy terms. They can be an excellent way to offset the costs of long term care for seniors who need dementia care support.
How Can You Use Long Term Care Insurance for Dementia Support?
One thing to keep in mind when considering how to pay for memory care is that dementia is a progressive condition. Your loved one’s needs typically increase over time – early on they may just need light support or reminders about ADLs, but those needs can increase over time to 24/7 support in a safe, secure environment. This is where long term care insurance can help. Once your LTC claim is approved, you can use the funds to help pay for:
- Memory care communities: These specialized communities have trained staff, carefully tailored activities, and secure environments to keep residents supported and safe.
- In-home care services: If your senior loved one is aging in place at home, long term care insurance may pay for a caregiver to help them with activities of daily living.
- Adult day programs: Some LTC policies will reimburse you for structured daytime care tailored to seniors who are diagnosed with dementia.
- Respite care: If you’re caring for your loved one with dementia yourself, some long term care insurance policies may include short-term coverage for respite care so you can take a break.
When Can You Start Using a Long Term Care Insurance Policy?
One thing to keep in mind with LTC insurance is that you can’t decide to use the insurance and start receiving payments the next day. There are certain steps that you’ll have to follow, including:
- Benefit trigger requirements have to be met. This means a person has to qualify for coverage. Typically, when they need help with two or more ADLs or show signs of cognitive impairments that requires supervision, benefits will be triggered.
- There’s an elimination period. Many policies have a waiting period, which can be 30 to 90 days, before benefits kick in. During that time period you’ll have to cover memory care costs out of pocket.
- You’ll need to provide documentation. You’ll need the required paperwork from doctors, care providers, and sometimes an official care assessment from the insurance policy.
Once you’re approved, payments are typically made monthly. The payments usually go to the policyholder or directly to the care provider, depending on the plan.
What Does Long-Term Care Actually Cover?
What long term care insurance covers is based on the policy itself. Some plans have a daily or monthly cap, and some have a maximum benefit period (whether it’s a period of time or a dollar limit).
What happens if your loved one’s care costs more than the policy covers? In this case, you’ll likely need to make up the difference with out-of-pocket contributions or from resources like home equity, savings, or passive income.
Is Long Term Care Insurance Worth it?
However, even partial coverage can be a big help with it comes to how to pay for memory care. It can give you more flexibility when looking for the right memory care community, protect personal savings and income, and ease your mind when it comes to finances. Long term care insurance policies are absolutely worth exploring, but here are a few things to keep in mind:
- Know exactly what the policy covers. Some don’t cover certain services, so be sure to explore plan options and find the right fit for your needs.
- Don’t delay filing a claim. You could miss out on months of benefits, so start the process early as soon as the need for the payments arises.
- Keep good records. Document all of your care expenses, provider invoices, and medical records and notes.
Have Questions? Contact Our Team at Terra Vista Today.
Wondering how you can use long term care insurance to find the best memory care support for your loved one? Contact Terra Vista today!
If you have more questions about other ways to pay for memory care costs, we encourage you to download our FREE guide to financing and affordability. This guide covers all funding options including bridge loans, reverse mortgages, veterans benefits and more.
Our expert team of advisors can give you the support you need to feel confident in your decisions, and we’re here to walk you through memory care for your loved one step by step. Schedule an in-person tour today!
