Long Term Care Insurance Details - Legally Bonded Caregiving

Most care giving is provided by a family member, or person in their immediate community. For those individuals who hire someone who is not family member, using a legally bonded caregiver can give greater comfort and peace of mind for the care recipient. There are rules and requirements in many jurisdictions for the bonding of caregivers who work with long term care patients. These rules may also make it easier for the long term care services provided by a legally bonded caregiver to be paid for by a long term care insurance company.

What is Long Term Care Insurance?

Long term care insurance provides a benefit for individuals who are in needs of some form of assistance as they age. An individual’s inability to perform any 2 of 6 activities of daily living (ADLs) or who suffers from a cognitive impairment such as Alzheimer’s disease is deemed eligible for long term care. The 6 ADLs include:

  • Bathing
  • Continence
  • Dressing
  • Feeding
  • Toileting
  • Transferring

The benefit paid by a long term care insurance policy is based on a daily amount that is gauged to the community in which the long term care services are being provided. Long term care services average $225 a day and can pay for care that is provided in the home or in a facility such as a skilled nursing center.

Becoming a Legally Bonded Caregiver

The process for becoming a legally bonded caregiver involves contacting an insurance carrier in order to purchase a surety bond. The surety bond provides a financial guaranty in the event that services provided are not up to required standards or some financial loss is experienced by the individual receiving the care services. In many jurisdictions, a surety bond is needed to obtain a license to become a qualified or certified long term caregiver.

Taking a State Required Test

In addition to obtaining a surety bond to meet licensing requirements, an exam may need to be taken in order to complete the process of becoming a legally bonded caregiver for long term care. The licensing exam for long term caregivers varies by state and is administered by either the state’s insurance commission or office on aging. It tests the individual’s knowledge on different areas of care and on the relevant statutes for long term care services. It seeks to create a baseline of knowledge needed to provide care for an individual unable to perform the ADLs or needs some form of ongoing assistance.

Application Fees and Additional Requirements

Any application or licensing fees that are required to become a legally bonded caregiver is typically assessed at the time a licensing exam is requested. Any additional requirements to becoming a legally bonded caregiver need to be met as well in order to obtain and maintain standing to provide services to a long term care patient.

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