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Living Independently Blog

Three Key Differences Between Envisage & Long-Term Care Insurance

Key Difference

Understand how Envisage helps you to fill in the gaps in long-term insurance coverage.


You may already be familiar with long-term care insurance, which is an insurance policy that helps to reimburse long-term care expenses. While these policies have traditionally been the only means to successfully managing the aging process, membership programs like Envisage are giving them a run for their money and helping seniors to fill in the gaps that long-term insurance doesn’t cover. Let’s explore a few of the drawbacks of long-term insurance coverage.

In its attempts to meet the needs of an aging generation, the long-term care insurance industry is trying to fight off a two-headed monster. The first issue is that the number of Americans needing long-term care are growing as their average age increases. The second concern is that the high costs of care are continuing to rise faster than the rate of inflation. How can insurance protect Americans from these huge costs?

Traditional long-term care insurance products are becoming more and more expensive in order to cover, or partially cover, the increases in the costs of care. Furthermore, the rates are not guaranteed. As costs of care and long-term care insurance premiums have risen, policies have undergone significant compromises in benefits:

Gap #1: Daily Benefits. With nursing home costs at $300 per day or more, many insurance brokers and agents are not even trying to fully cover nursing home costs. They know that people prefer to stay at home, and so have come up with a compromise: A daily benefit of $150 to $200 per day, which covers (or almost covers) 8-hour per day home care costs. But this type of plan cannot fully cover 24-hour per day home care. Envisage offers a choice of plan levels that provide you with the amount of coverage you think you will need.

Gap #2: Benefit Limit. Most people would prefer lifetime coverage, but it’s too expensive and virtually unavailable as an option. The advantage of the Envisage program is that you get to choose your coverage level – and all levels have access to a range of Envisage care coordination benefits – while you are a member.

Gap #3: Elimination Period. Long-term insurance policies are almost always proposing a 90-day elimination period, which is the amount of time an insurance policyholder must wait between when an illness or disability begins and when they can begin receiving their benefits. These policies may also include a zero-day home care rider, which waives the elimination period for qualified care received at home. But that trade-off comes with a fair-sized increase in premium, and days utilizing the zero-day home care rider often do not count against the facility elimination period. The 90-day elimination compromise helps lower the cost, but policyholders are often upset when they have to wait 90 days for their policy to pay a full benefit. The upside? With Envisage, you can choose a plan that never makes you wait for care.

As a smart option for long-term planning, Envisage provides you with exclusive access to a range of services that you can begin to use now or in the future if you experience a change in your health status.