Insurance for in-home care?

The long-term care insurance industry may be waking up to a fact Aging Solutions has known for a long time — caring for an aging parent at home is cheaper than nursing home care. And it almost always means a better quality of life for your parents

Long-term care insurance, which was supposed to pay for nursing home care late in life, was a problem product, vexing both industry and consumers. It was a hard sell from the get-go. Few consumers wanted to think about, much less buy, something that would benefit them only if they suffered a physical decline so serious they would need nursing home care–25 years down the road. Moreover, monthly premiums were and are high.

When consumers did need nursing home care and filed insurance claims to pay for it, insurance companies found they had miscalculated and they wouldn’t make much profit on the product after all. Many companies quit selling LTC policies altogether after a few years, which made the remaining policies even harder to find and more expensive.

Of those companies that stayed in the LTC market, a few bad apples fought tooth and nail with their customers to avoid paying claims. Aging Solutions has helped many clients over the years  to get their LTC claims paid by insurance companies who tried to fix their own financial mistakes on the backs of consumers.

California Healthline reports (“How To Get Long-Term Care At Home Without Busting The Bank”) that some insurance companies are taking another look at the high costs of nursing home care compared to the lower costs of staying home and bringing services in.

Critics of the way LTC insurance has been marketed until now contend that everybody would be better off with a focus on home care as the better way to provide care to the senior population. “If the long-term care insurance industry focused more on helping people cover home-based services, they argue, policies would be more affordable, and potentially appealing,” according to California Healthline’s story.