LONG TERM CARE INSURANCE
What is Long Term Care?
Long Term Care (LTC) is the care you may need if you are unable to perform basic activities on your own…things like bathing, dressing, walking or using the bathroom. The goal of long term care planning is to help you maintain your independence as you age.
of people turning 65 will require long-term care in their lifetime
the average time a person will need long term care
Someone in the United States develops Alzheimer’s disease every 65 seconds, with over 5.8 million currently diagnosed
the median annual cost for a private room in a nursing home nationally
Personal care that provides help with "activities of daily living" such as bathing, dressing, grooming, using the toilet, eating, and getting around
Personal care may be provided in your own home, a family member’s home, assisted living or nursing facility
Care can also include help with meals, laundry, shopping and transportation services
People who need long term care often have an on-going health condition or disability
The trigger for care may be sudden or from gradual health deterioration due to age or a medical condition
Getting the care you need
We can plan for many life events, but we cannot predict an accident, an injury, illness or simply the natural effects of aging.
Imagine that you are in a situation where you have difficulty dressing, bathing, moving around your home, eating or performing basic activities. Who will help you do these things? Whether you are single or have a large and loving family, it is a critical question. You don’t want those around you to shoulder the burden alone.
Long-term care options vary widely. Some involve care in your own home, while others can involve extended stays in assisted living or nursing facilities.
They all have one common denominator:
How are you going to pay for what you need?
That is the question. What dollars will you access first? Here are some common choices:
The problem is deciding which dollars will you access first and how easily can these assets be liquidated, but most importantly, what is the effect on your other financial goals?
Unless you have substantial resources at the ready, you may wish to consider long term care insurance. Even if you have Medicare it strictly limits coverage for long-term care.
As with all insurance products, there are many variations to long-term care insurance. These can include:
Self-funding through Savings or Investment Accounts
Real Estate or Home Equity
Ask family for help
Medicare or Medicaid
Long Term Care Insurance
Daily benefit amount
Length of time the policy will pay
Waiting period before you can collect benefits
Types of care covered
Premiums vary depending on these factors, your age, health condition and other variables. You can also add extras to protect against inflation or an option to share coverage with your spouse.
Purchasing a long-term care policy is one of the most critical risk management decisions you will ever make.