Long-Term Care
Long-Term Care insurance may be your best option if you develop a chronic illness or cognitive impairment.
Have you ever known anyone whose assets were totally destroyed by prolonged home health or nursing home care – A friend, a neighbor, a relative – or even you – could be one of the many Americans who face this difficulty each year. Long-Term Care Insurance may be your best option if you develop a chronic illness or become disabled and, in a position, where you can no longer provide care for yourself for an expected period of time. Long-Term Care is the largest health care expense that is not covered by group or individual health insurance, HMOs, retiree health plans or Medicare, Medicare Advantage plans, and Medicare supplements.
Who needs Long-Term Care?
If you develop a chronic illness or become disabled and can no longer care for yourself for an extended period of time, you’ll need long-term care services. Cost for LTC can be very expensive. A semi-private nursing home room is $89,297 a year, according to Genworth’s 2018 Cost of Care Survey. As life expectancies increase, so does the duration of long-term care needs, and the financial burden may end up falling on your loved ones after you’ve run through your own life savings.
ANNUAL MEDIAN COSTS OF LONG-TERM CARE IN 2018:
(*Source: Genworth 2018 Cost of Care Survey)
Adult Day Health Care
Assisted Living Facility
Homemaker Services
Home Health Aide
Nursing Home Care
Given that the cost of long-term care can quickly deplete your life’s savings, you should truly consider adding long-term care insurance to your financial plan.
Plus, there is at least a 50% chance you’ll need some type of long-term care after age 65.
What Triggers LTC benefits:
Being unable to perform, without Substantial Human Assistance, at least two Activities of Daily Living for a period of at least 90 days.
Bathing
The ability to wash one’s self by sponge bath or in either a tub or shower, including the task of getting in and out of the tub or shower.
Eating
The ability to feed one’s self by getting food into the body from a receptacle (such as a plate or cup or table) or by a feeding tube or intravenously.
Continence
The ability to maintain control of bowel and bladder function and the ability to perform associated personal hygiene (including caring for catheter or colostomy bag).
Dressing
The ability to put on and take off all items of clothing and any necessary braces, fasteners, or artificial limbs.
Toileting
The ability to get to and from the toilet, to get on and off the toilet, and to perform associated hygiene.
Transferring
The ability to change positions such as moving from bed to standing, chair to standing, bed to chair, and the reverse of these activities.
Bathing
The ability to wash one’s self by sponge bath or in either a tub or shower, including the task of getting in and out of the tub or shower.
Eating
The ability to feed one’s self by getting food into the body from a receptacle (such as a plate or cup or table) or by a feeding tube or intravenously.
Continence
The ability to maintain control of bowel and bladder function and the ability to perform associated personal hygiene (including caring for catheter or colostomy bag).
Dressing
The ability to put on and take off all items of clothing and any necessary braces, fasteners, or artificial limbs.
Toileting
The ability to get to and from the toilet, to get on and off the toilet, and to perform associated hygiene.
Transferring
The ability to change positions such as moving from bed to standing, chair to standing, bed to chair, and the reverse of these activities.
OR:
The insured has a Severe Cognitive Impairment that requires substantial supervision to protect the insured from threats to health and safety.
A Chronically Ill Individual is someone who has been certified that he or she is expected to be unable to perform, without substantial human assistance, at least 2 ADLs for a period of at least 90 days, or having a severe cognitive impairment that requires substantial supervision to protect the insured or others from threats to health and safety.
A Severe Cognitive Impairment is a deficiency in one’s memory (whether short-term or long-term), orientation as to person, place and time, deductive or abstract reasoning, or judgment as it relates to safety awareness. The level of severity is established by clinical evidence and standardized tests that reliably measure the loss.
While financial considerations cannot be understated, long-term care insurance is also about peace of mind and control. Having it ensures you’ll have access to first-rate care when you need it, and that you won’t have to be dependent on others or be a burden to your children. The odds you will need long-term care insurance are greater than you might imagine.
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Do I Need Long Term Care Insurance?
Most people are not aware of the likelihood of needing long term care.
The following questions can help you determine whether you may need the protection provided by long term care insurance:
- Can you afford to use your savings or retirement income to pay for long term care at $150-$300 per day for 2-3 years?
- Do you have assets excluding your home that are at risk?
- Has anyone in your family ever needed long term care?
- Would taking care of you be an emotional or physical hardship for your spouse/partner?
- If your spouse/partner needed long term care, would you be able to provide it now and when you are older?
- Would the people caring for you be able to maintain the quality of their own lives?
- Are you concerned with being able to afford long term care?
What Are Important Factors To Consider When Purchasing a Long-Term Care Policy?
- Policies cost less if purchased when you’re younger and in good health. If you’re older or have a serious health condition, you may not be able to get coverage — and if you do, you may have to spend considerably more.
- What will your approximate cost be for future long-term care service? (We can help you determine cost based on statistics showing average costs in your residential area.)
- How much are you able to put aside to contribute to the cost of your care?
- How much will you need your policy to pay in benefits each month?
- How long do you think you will need LTC services?
- Upon claim, how long can you wait until your policy begins paying claims?
