Excerpt from: NPR (click for full article)
Long-term care insurance offers financial protection if a person needs help with daily tasks such as eating and bathing. Policies typically cover care provided in different settings, whether it's a nursing home, a private home or an assisted living facility. People usually buy a policy that provides up to a specified daily dollar amount, say $150, for three to five years.
Burns says that although alternative plan of care clauses can be beneficial, they are honored at the insurance company's discretion.
"It's completely up to the company," she says. "I've had situations where companies have refused to pay under that benefit."
When considering a policy, people have to ask themselves: "What's the long-term care landscape going to look like in 20 years?" says Burns. An alternative plan of care clause may help provide some sense of security, but it's no panacea.
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