The Value of a Life Care Policy

A specialized insurance coverage, life-care policy indemnification covers end-of-life care and treatment of the insured, as part of an extended life services agreement. Federal and state insurance laws permit insurers to offer seniors life-care insurance policy coverage. Distinct from a limited life insurance agreements life-care policies are separate coverages. A comprehensive insurance policy that supports the planning of advance directives, a life-care policy can be written into a living will. Those planning a living will benefit from inclusion of the added health and life expense benefits potentially required by a person while still living. Life-care coverage protects the value of estate and trust assets by covering healthcare treatment and end-of-life care expenses. Estate planners such as planned giving and nonprofit charitable giving specialists, and living trust originators, can gain insight about the comparative estate planning advantages of life-care policies.

1.Extended Life-care Policies

The most comprehensive life-care policy coverage includes life insurance premium benefit distribution to beneficiaries at time of an insured’s death. This type of policy also covers medical and end-of-life expenses such as residential services, treatment, and related costs. There are also extended life-care policies offer unlimited healthcare services agreements, providing access to the widest range of medical providers at an affordable premium. Although extended life-care policies usually have more costly sign-on fees, they make informed consent agreement with medical and care facility providers easier in the event the insured is incapacitated, and living will advance directives under the authority of a healthcare proxy comes into effect.

2.Modified Life-Care Policies

Life insurance policy holders may have the option of modifying an existing policy to include health care services. Modified life-care policies offer an insured unlimited medical care expense coverage exempt of monthly premium fee enhancements. Modification of an extended life-care agreement affords insurance coverage of a term designated stay in a full-care nursing facility at no extra service charge for provider costs.

3.Fee-for-service Policies

The on-demand version of life-care insurance provision, a fee-for-service agreement enables an insured to access healthcare services at market rates exclusively based on need. Fee-for-service agreements provide insured specified service coverage at less costly sign-on fee. However, this type of life-care policy coverage is often considered inadequate for expense coverage of the costs associated with long-term care of incapacitated or terminally ill patients.

Life-Care Insurance Provisions

The provision of life-care insurance within federal and state laws coincides with the enactments of specialty care administration and living will advance directives. Example is New York Consolidated Laws, Insurance Laws rule definition of “Access to specialty care” ISC § 4804 and “Access to end of life care” ISC 4805. Article 28 – F., Section 2899 n. Relation to other laws and contracts. Part of the scope of U.S. healthcare policy, insurance industry guidelines are specified for patients who are incapacitated or requiring end-of-life care. Quite a few states have enacted legislating “Policy Conversion Consumer Disclosure” rules within their insurance statute. Disclosure rules are disclosure mandates for “Long Term Care Benefit Plan” structures accompanying life-care insurance policies. The disclosure rule expands protections for insured seeking life-care coverage independently.

A separate form of insurance coverage for life-care policies are offered as comprehensive health and life insurance, fee-for-service agreement, or existing policy modification.

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