FAQ - Long-Term Care Insurance
- Q: What is Long-Term Care Insurance?
Long term care insurance can provide the assistance you might need in the event of a prolonged illness or disability, while relieving your family from financial and emotional burdens.
In a nutshell, it is a protection plan that pays you a set amount when you can no longer live independently. It can help pay your nursing home costs, your assisted living costs - even your costs when you are disabled and confined to your home. Whenever you can't perform some of the essential activities of daily living (ADLs) - eating, bathing, getting out of bed, going to the bathroom, walking, dressing yourself, etc. - your long-term care insurance will cover the cost of caring for you.
It pays no matter what your age: a 30-year old with a permanent spinal injury, or an 85-year old unable to perform simple daily functions such as eating or dressing.
Long-term care insurance gives you peace of mind. And it protects your investments and your estate you've worked so hard to accumulate.
As people live longer, long-term care insurance is more important than ever. Under federal law enacted in 1996, premiums may be tax deductible and benefits tax free if you own a tax qualified long term care policy.
There are many types of long-term care policies available with a variety of options and features. We survey the market to offer our customers only the best products from the highest rated companies in the industry. If for some reason the plans we offer don’t quite suit your needs, we’ll shop outside for the best plan for you. That’s First Hawaiian Bank’s commitment to you as our valued customer.
- Q: Can I customize my Long-Term Care Insurance Plan?
Long-term care insurance is not a one-size-fits-all arrangement. You can decide which coverage you need - and where you'll need it - based on your family situation. You can structure a plan that covers any or all of these types of care: Nursing Home and Assisted Living, Home Care, Professional Home and Community Care, or Total Home Care.
What's more, your coverage doesn't have to be all-or-nothing. Your benefits can kick in when you require substantial assistance with as little as two out of the six activities of daily living (ADLs).
- Q: What kind of policy can I get?
There are many different kinds of policies available. And costs can vary among policies, and among insurance companies offering the same type of coverage. For the best peace of mind, look for these features in a long-term care policy:
- Can the premium costs remain the same from year to year, regardless of your age?
- Do you have inflation protection as the cost of care rises?
- Will the conditions to qualify for your insurance benefits be fair and reasonable? For example:
- Will your qualification for benefits be based on your disability (your inability to care for yourself), rather than on your specific disease or physical condition?
- Will the insurance company forgive (waive) your premium payments while you are disabled and drawing benefits?
- Can you and your spouse share in the benefits you each are guaranteed, in case one of you needs more (and longer) care?
- Q: What are the benefits of Long-Term Care Insurance?
With long-term care insurance, you can rest easy. Your policy can't be canceled (except for nonpayment of premiums), and your premium cost can remain level throughout the years. But most importantly:
- You may not need to deplete your life savings to obtain care for yourself.
- You may be able to maintain your independence.
- You may be able to take care of yourself without relying on government welfare programs.
- Your family and loved ones may not have to sacrifice their assets and savings to care for you.
- You will be able to preserve your assets and pass them on to your heirs.
- You may be able to choose the location for your care.