Long-term insurance is a broad category of coverage that is used to pay for long-term care needs associated with Activities of Daily Living (ADLs). It’s generally associated with older people requiring care workers in your home, assisted living facilities, or residence in a nursing or skilled care home. It’s good to think about long term care planning.

However, long-term care is not necessarily limited to seniors – it can apply to injured or disabled persons, too. In other words, while we all think we’re invincible when we’re younger and healthier, there might situations where we need extended help with certain Activities of Daily Living (ADL’s) like bathing, dressing, eating, toileting, and ambulating (moving from say a bed to a chair).  

Long term care insurance and the needs associated with long term care can be broken down into different subcategories. This is used to help define a policy related to the needs of a potential policyholder. In this definitive guide, we will be addressing ‘Long Term Insurance Subcategory A.‘

So, let’s dive into the details and ask, what is ‘Long Term Insurance Subcategory A?’

What is Long Term Insurance Subcategory A?

Information on ‘Long Term Insurance Subcategory A’ is relatively limited given its lack of obvious awareness and use in the financial products market. However, the definitions set out by different legislation to it as a subcategory of long-term care. It highlights the specific circumstances of care required by the policyholder in terms of what care can be covered through a particular long term care insurance policy. 

As with most other categories of long term care insurance there are certain nuances to Subcategory A, and it can be part of a conversation that you have with a licensed agent., who can walk you through the definition of ‘Long Term Insurance Subcategory A’ and it’s details, and see if your needs and situation might fall into this category. In this guide, we can break down the elements of what makes up this subcategory.

Definition

According to Associated Compliance, ‘Long Term Insurance Subcategory A’ refers to policies that cover the need for assistance with less financial commitment.  Those would generally refer to those requiring unspecialized care, or healthcare. The policyholder will have expenses covered for external help with daily activities, ensuring the person’s well-being. The subcategory is sought for older people who are generally considered well but have trouble with trivial tasks.

Examples

The term ‘Long Term Insurance Subcategory A’ is not widely used in presenting policy plans. However, the American Association of Long Term Insurance provides examples of policies that stem from the subcategory’s definition. Examples of the people placed into this insurance plan would be:

• Those who need assistance with home duties such as:
• Cooking
• Cleaning
• Bathing
• Getting dressed
• Need reminders of medication
• Require companionship
• Struggle with daily completion tasks outside the home

The Federal Long Term Insurance Program describes the types of care workers that support this subcategory of insurance. These include personal care, social services, homemaker services, unspecialized medical care, speech, physical, respiratory or occupational therapy.

What Long Term Insurance Subcategory A Covers

Those with ‘Long Term Insurance Subcategory A’ policies will find that most plans will release funds to cover daily home health care services.  Note that this does not include round-the-clock help and excludes those with illness or ailments that require home care with medical expertise.

A person placed into this subcategory will see their insurance policies defined so that it covers or reimburses the cost of an unspecialized home carer to assist with day-to-day activities. Typically, the benefits of this type of plan kicks in when you reach a certain elderly age and are less able to care for yourself but are otherwise deemed to be mentally and physically fit.

Advantages

There are general advantages to finding placement in ‘Long Term Insurance Subcategory A.’ Those include:

• Choosing the home care you want and being reimbursed
• Less expensive premiums and monthly payments considering the care is unspecialized
• Application approvals are faster and more likely

Disadvantages

Naturally, some disadvantages counterbalance this subcategory. We highlight the downside of these policies below:

• Does not cover any medical emergencies requiring specialized skill
• Premiums and costs can increase as you age
• The plan could be void with any sudden illnesses or ailments

Of course, there are a plethora more advantages and disadvantages to ‘Long Term Insurance Subcategory A.’ Should you require more specific information, Policy Solver’s services are available to answer all your questions.

The definition breakdown ultimately begs the question – what are ‘Long Term Insurance Subcategory A’ products?

Long Term Insurance Subcategory A Products

The products that fit into ‘Long Term Insurance Subcategory A’ are policies, pensions, or social contributions covering home care services. In general, Fidelity showcases 4-different options those fitting into the subcategory could consider, not strictly limited to insurance companies. They are outlined below:

Government Assistance

There are many government programs for those who require care in ‘Long Term Insurance Subcategory A.’ Government assistance entities such as Medicaid, Medicare, and the Veterans Health Administration will contribute to home care costs. However, you will need to qualify for these programs based on various factors such as income and owned assets.

Many of these services can’t be relied upon to provide the care required. Generally, government programs don’t offer benefits for long-term care, even if you’re of elderly age. Parameters for eligibility also vary from state to state within the United States. If you’re a low-income family or veteran, this product may be ideal – but if not, perhaps check other options.  Your insurance agent will be able to help you decide if a Subcategory A plan makes sense for you. 

Traditional Long Term Care Insurance Policies

Most medical insurance providers will provide policies more tailored to your needs. Traditional ‘Long Term Insurance Subcategory A’ plans allow clients to choose how long they want the policy to last. Other variables include what it covers and how long you’ll need to wait before it becomes active. Policyholders usually pay annual premiums for life for this product or unless they decide to cancel their policy or let it lapse.

Traditional ‘Long Term Insurance Subcategory A’ policies are best for those who want a high degree of flexibility and customizability with their products. However, it should be noted that many insurers are abandoning these offerings given the changing times. If there are any available, the annual premiums may fluctuate, too.

Hybrid Policies

Hybrid policies are a relatively complex product concerning ‘Long Term Insurance Subcategory A’ policies. The core of the idea is that the plan incorporates both life insurance features with traditional long-term care insurance. This means that should you require long-term care in the home, the policy will cover the necessity whenever needed. If the plan is never used, then the policy will pay out a benefit to the beneficiary upon death.  

The intricacies of hybrid policies can vary between insurers, so it’s imperative to understand whether this is an ideal product for you. These plans would most suit those who find little risk with their future health and see that home care wouldn’t be hard to come by if required.  They are becoming more popular. 

Personal Savings

Personal savings are arguably the most straightforward product out of the 4. These accounts typically come in retirement plans, 401ks, or IRAs managed by insurers, pension funds, or other financial entities. Many employees of companies will be presented the option to pay into these to have a savings pot for future needs. Many of them already have a good long term care plan.

Should a personal savings account be opened reasonably early on in your career, you could find that it’s pretty sizeable. Considering that ‘Long Term Insurance Subcategory A’ persons usually only need home care, the finances could cover the lower cost of unspecialized services. However, this may not be feasible for those with lower incomes or savings.

Navigating through the maze of ‘Long Term Insurance Subcategory A’ products can be challenging given all the complexities. It’s recommended to seek impartial and transparent advice on the best bespoke products. Policy Solver is an agency that specializes in providing clear, concise, and beneficial information on this product and other long term care insurance offerings. 

Next up, how does ‘Long Term Insurance Subcategory A’ compare to other subcategories?