Long-Term Care Insurance
Most people don't know what long-term care is until they or someone they love need it...
What is Long Term Care?
Long term care is the care you may need if you are unable to perform daily activities on your own. That means things like eating, bathing, dressing, transferring and using the bathroom. The goal of long term care is to help you maintain your lifestyle as you age. Medicare, Medicare supplement insurance, and health insurance you may have at work usually won’t pay for long term care.
Why would you need it?
A need for long term care may result from accidents, illnesses, advancing aging, stroke, or other chronic conditions.
Unlike traditional health insurance, Long-Term Care Insurance is designed to cover long-term services and supports, including personal and custodial care in a variety of settings such as your home, a community organization, or other facility.
Long-term care insurance policies reimburse policyholders a daily amount (up to a pre-selected limit) for services to assist them with activities of daily living such as bathing, dressing, or eating. You can select a range of care options and benefits that allow you to get the services you need, where you need them.
The cost of your long-term care policy is based on:
How old you are when you buy the policy
The maximum amount that a policy will pay per day
The maximum number of days (years) that a policy will pay
The maximum amount per day times the number of days determines the lifetime maximum amount that the policy will pay.
Any optional benefits you choose, such as benefits that increase with inflation
If you are in poor health or already receiving, long-term care benefits you may not qualify for long-term care insurance as most individual policies require medical underwriting. In some cases, you may be able to buy a limited amount of coverage, or coverage at a higher “non-standard” rate. Some group policies do not require underwriting.
People are living longer than ever before. But as you age, the chance that you’ll need help to manage a chronic illness or disability also increases.
In fact, according to the U.S. government, almost 70% of those 65 and over will require some type of long-term care. While private health insurance and Medicare will help pay hospital and doctor bills, they won’t typically cover the costs associated with extended in-home or nursing facility care, which, at $40,000-$80,000 per year, can quickly run through your personal savings. See how long-term care insurance can help protect your nest egg and save you from becoming a burden on loved ones.