Did you know that one-third of today’s 65-year-olds may never need long-term care support, but 20 percent will need it for longer than 5 years?
Long-term care insurance (LTCI) is designed to help cover the costs of care services for seniors who need assistance with activities of daily living (ADLs). However, many people wonder: Does long-term care insurance cover independent living? The answer is generally no, but there are some nuances to consider, and times it could be helpful.
In this blog, we’ll explore how long-term care insurance applies to senior living options, including its role at East Ridge at Cutler Bay.
What Is Long-Term Care Insurance?
Long-term care insurance (LTCI) is a type of policy that helps pay for services assisting individuals with activities of daily living (ADLs), such as bathing, dressing, and eating. It is particularly useful for those who require care in settings like assisted living or skilled nursing facilities. Traditional long-term care insurance policies cover these care services but do not typically include residential costs. Alternatively, hybrid long-term care insurance combines long-term care insurance with life insurance or an annuity, providing more flexibility in how benefits can be used.
Long-Term Care Insurance and Independent Living
In most cases, long-term care insurance does not cover independent living because it is not designed to pay for housing costs. Instead, it’s meant to fund care services, not general living expenses.
However, there are some exceptions to the rule. Some policies may reimburse for in-home care provided within an independent living setting. They may also cover housekeeping, dining, and transportation.
Before choosing an independent living community, it’s important to review individual policy details to understand coverage limitations and possibilities.
Long-Term Care Insurance and LifeCare Communities
LifeCare Communities, a type of Continuing Care Retirement Community (CCRC), offer a unique model where housing and future care services are bundled into one plan. Residents pay an entrance fee and a predictable monthly cost, securing access to assisted living, memory support, rehabilitation, respite care, home health and skilled nursing as needed.
While long-term care insurance does not cover the cost of independent living in a LifeCare Community, it can help offset the expenses of care services should a resident transition to a higher level of care.
Financing Independent Living: Alternative Options
Since long-term care insurance does not generally cover independent living, seniors often use other financial strategies, including:
Personal savings and retirement funds
Many individuals fund independent living through pensions, Social Security or investment accounts.
Entrance fees in CCRCs
These fees provide access to a full continuum of care, making them a long-term investment in both housing and future health care needs.
Hybrid long-term care insurance
These policies offer more flexible benefits, potentially allowing funds to be used for independent living or other senior living expenses.
Planning for the Future at East Ridge at Cutler Bay
East Ridge at Cutler Bay is a Life Plan Community that offers independent living with the security of a full continuum of care. As a Life Plan Community, East Ridge provides a comprehensive approach, allowing residents to enjoy an active lifestyle today while ensuring access to care when needed.
By choosing a Continuing Care Retirement Community (CCRC) like East Ridge, residents gain financial predictability and peace of mind, knowing that future care needs will be met without the uncertainty of rising health care costs.
To learn more about how East Ridge at Cutler Bay can support your long-term planning, contact us today and take the first step toward a secure and vibrant future.
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