Alzheimer’s disease has a very slow, progressive nature. While this is a blessing in the early stages, it does mean that long-term care costs for Alzheimer’s patients are extremely expensive. On average, the cost for caring for an Alzheimer’s patient can be $200,000 or more.
Realistically, few people can afford the cost of care associated with the disease. Thankfully, long-term care insurance is an option that can help you manage the burden of cost of care. Today, there are over 100 insurance companies that offer long-term care insurance, and over all, it’s a sound investment.
Most long-term care insurance polices are known as indemnity or expense occurred policies. Indemnity, or per diem, polices pay up to a fixed amount, regardless of what you spend.
With an expense occurred insurance policy, you choose the amount of coverage when you purchase the insurance. When the insurance is used, you are reimbursed for the actual expenses for services received, up to a fixed amount per day, week or month.
Some companies also offer integrated policies. These polices have a specific dollar amount that may be used on different types of long-term care services. There is a daily, weekly, or monthly limit, but using less than the limit extends the length of the benefits. For example, if the policy permits $300 per day for 5 years, but you only use $100 per day in actual care, the $200 per day would be available to you even after the 5 years had passed.
As we’ve seen in recent years, the cost of medical care and long-term care is on the rise. Be sure that the policy you choose has an inflation adjustment included in the policy so that you don’t short change your future self.
