Retirement & Financial Planning Report

Not all long-term care (LTC) insurance policies cover assisted living facilities. You should review your policy, especially if it’s a home-health-care-only policy, a nursing-home-only policy, or any policy issued before 1990. If assisted living coverage isn’t included, ask the insurer if that coverage can be added, and, if so, how and at what cost.

Many residents in assisted living facilities, especially those with cognitive problems, may not need enough care to qualify for benefits under most LTC insurance policies. Seniors and their children might make the decision to move to assisted living, thinking that their LTC insurance will pay for the care, only to find out their claim is denied. Therefore, even if your parents have this coverage you should make sure that they have the ability to pay for expenses out-of-pocket, not only during the policy’s waiting period but also during any claims denial and appeal process.