The motivation behind an insurance policy is to provide financial protection should certain events occur. For policyholders, it handles payments and protection for a variety of situations. Insurance also covers the cost of liabilities due to damage, injury, and other factors.
Overall, what this means is that policies provide a level of care. It’s similar to the way parents may step in and help their children when emergencies or other costly events come up. In the medical, insurance, and financial worlds, there are a few different forms of care. Here, we’ll discuss the general types of care options available to people with disabilities, those recovering from injuries, and the elderly.
The practice of custodial care addresses issues people have with their activities of daily living (ADL). This can be something as simple as eating or bathing. Health care professionals often provide custodial care to people who suffer from dementia, Alzheimer’s, or traumatic brain disorders.
While it’s a form of non-medical care, approval needs to be given by a physician. Both Medicare and Medicaid provide partial support for custodial care. Furthermore, riders can be added to health and life insurance policies to help cover costs.
Long-term care insurance is available to cover the costs of assistance for those who are 65 or older. It sets up the means to fund care for an extended period at a nursing home or within a personal residence in the form of a home health aide. Those who qualify for long-term-care insurance have disabling or chronic conditions where constant supervision is needed.
Unlike Medicaid, this form of insurance is more flexible when it comes to the type of assistance. In other words, policyholders don’t have to select from a small list of providers.
Due to its extensiveness, long-term care insurance premiums can be expensive. Additionally, it’s not something covered in a normal health or life policy. It needs to be added as a rider.
Unlike long-term insurance, short-term care insurance is used for recovery instead of a consistent need. Normally, people who are healing from a personal- or work-based injury take advantage of short-term care to cover various costs.
This form of policy rider also covers stays in assisted living centers and nursing homes along with home care. However, coverage is for a year or less. Plus, it is used for gaps that Medicare doesn’t handle.
In some situations, short-term care insurance won’t take effect until the customer’s standard insurance coverage maxes out. For instance, once a policyholder exhausts their coverage for physical therapy due to an injury, the short-term rider will take over to pay the remainder of the fees.
Likewise, the purchase of a short-term care rider can help out if the coverage within a workers’ comp program ends. This way, the individual can continue healing without fear of not having the funds necessary for food or rent.