Kohl's Employees: What to Look For in an Extended-Care Policy

Extended-care coverage can be complex. Here's a list of questions Kohl's employees can ask to help better understand the costs and benefits of these policies.

What types of facilities are covered?  Kohl's extended-care policies can cover nursing home care, home health care, respite care, hospice care, personal care in your home, assisted living facilities, adult daycare centers, and other community facilities. Many policies cover some combination of these. Ask what facilities are included when you're considering a policy.

What is the daily, weekly, or monthly benefit amount?  Policies normally pay benefits to Kohl's employees by the day, week, or month. You may want to evaluate how (and how much) eldercare facilities in your area charge for their services before committing to a policy.

What is the maximum benefit amount?  Many policies limit the total benefit they'll pay to Kohl's employees over the life of the contract. Some state this limit in years, others in total dollar amount. Be sure to address this question.

What is the elimination period?  Extended-care policy benefits don't necessarily start when Kohl's retirees enter a nursing home. Most policies have an elimination period – a timeframe during which the insured is wholly responsible for the cost of care. In many policies, elimination periods will be either 30, 60, or 90 days after nursing home entry or disability.

Does the policy offer inflation protection?  Adding inflation protection to a policy may increase the cost for a Kohl's employee, but it could be very important as the price of extended care may increase significantly over time.

When are benefits triggered?  Insurers set some criteria for this. Commonly, extended-care policies pay out benefits when the insured person cannot perform 2 to 3 out of six activities of daily living (ADLs) without assistance. The six activities, cited by most insurance companies, include bathing, caring for incontinence, dressing, eating, toileting, and transferring. Kohl's employees should also consider how a medical evaluation of Alzheimer's disease or other forms of dementia may make the insured eligible for benefits as well.

Featured Video

Articles you may find interesting:

Is the policy tax qualified?  In such a case, the policyholder may be eligible for a federal or state tax break. Kohl's employees should note how under federal law and some state laws, premiums paid on a tax-qualified extended-care policy are considered tax-deductible medical expenses once certain thresholds are met. The older you are, the more you may be able to deduct under federal law. You must itemize deductions to qualify for such a tax break, of course.

Keep in mind, this article is for informational purposes only and is not a replacement for real-life advice, so make sure to consult your tax professional before modifying your extended-care strategy.

How strong is the insurance company?  There are several firms that analyze the financial strength of insurance companies. Kohl's employees can look up their ratings and get some perspective based on that.

There are many factors to consider when reviewing extended-care policies. The best policy for you may depend on a variety of factors, including your own unique circumstances and financial goals. 

ACL.gov, 2022
Investopedia.com, 2022
AALTCI.org, 2022