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One common question I hear from seniors considering a move to a continuing care retirement community (CCRC), also known as a life plan community, is whether a long-term care insurance (LTCi) policy can be used to pay all or part of the monthly CCRC fee. The answer depends on the specifics of your policy and the terms of the community.
In this short video blog, I explain three essential points to help you understand how LTCi interacts with CCRC costs:
- Know the exact terms of your LTCi policy and which types of care it covers. Policies vary widely in definitions, covered services, elimination periods, and benefit triggers. >> Related: 3 Frequently Asked Questions About LTC Insurance Claims
- Check how your policy defines or treats CCRCs. Some policies explicitly reference CCRCs or assisted living; others do not. If your policy does not mention CCRCs, you may need documentation from the community or from your insurer to determine eligibility for benefits.
- If you are evaluating a life care contract, determine what portion of the monthly CCRC fee will be considered a reimbursable long-term care expense once you begin receiving LTC services. Life care contracts can include different allocations for housing, services, and care, and only the care portion may qualify for reimbursement. Learn more about life care contracts and other types of CCRC agreements >>
Long-term care insurance can be an important part of planning for future care needs, but policies can be costly and complex. Before relying on a policy to cover CCRC expenses, review your contract carefully, ask the insurer to clarify ambiguous terms in writing, and consult with the community to confirm how they bill for services.
For more information about long-term care and the various ways CCRCs structure payment, visit the My LifeSite Resources section.