Who are eligible for long-term care insurance?
To qualify for benefits, the policyholder needs to get certification from a reputable health care provider that the can no longer perform at least two of the following “activities for daily living,” or ADLs, without direct assistance.
- Bathing: The ability to get in and out of bathroom to clean oneself
- Continence: The ability to control urine and bowel movements
- Dressing: The ability to put on or take off one’s clothes
- Eating: The ability to feed oneself
- Toileting: The ability to get on and off the toilet
- Transferring: The ability to get in and out of a bed or chair
Most policies require beneficiaries to pay for care services out of pocket for a certain timeframe. This usually lasts between 30 and 90 days, after which the insurance provider begins the payments. Long-term care insurance plans pay out up to a daily limit for care until the lifetime maximum is reached.
It is often assumed that the need for health coverage decreases as individuals reach a certain net worth as they also hit a stage where they can afford the best medical care possible. But in reality, the more a person’s wealth grows, the more health insurance can prove valuable in helping them protect their assets. Here are some of the reasons why health coverage may be crucial for high-net-worth individuals.
It protects their most valuable asset
For many affluent people, their most important asset is their ability to earn an income. This is often where their financial security lies. Because of this, protecting this asset should be the cornerstone of their financial plan.
This is where critical illness and disability insurance come into play. These types of coverage serve as a form of financial cushion if they are unable to work, either temporarily or permanently.
