Long Term Care Insurance is what people need when they are unable to care for themselves because of a prolonged illness, disability, or frailty. It can be as simple as in-home help with daily activities such as dressing or bathing, or as specialized as skilled medical attention received in a nursing facility. Assisted Living facilities are also great alternatives for many who need this kind of care. With an estimated 70 million Baby Boomers reaching retirement age, the need for Long Term Care Insurance is exploding.
More than 40% of all people over age 65 will enter a nursing home.
39% of Americans receiving long term care are under age 65.
The cost? $30,000 to $100,000 a year – depending on where you live.
The 7 most urgent priorities of senior citizens:
- I want to avoid depending on others for my care.
- I don’t want to be a burden to my children or spouse.
- I want to preserve my independence and avoid welfare.
- I want to guarantee my access to quality care.
- I want to protect my assets and have an estate for my heirs.
- I don’t want to leave a legacy of debt.
- I don’t want to spend through everything we took a lifetime to create.
Long Term Care benefits pay for care at home, nursing facilities, alternative care centers, adult day care, and assisted living.
Most of us personally know someone who has spent time in a nursing home or received home health care. At age 65, the average American faces at least a 45% risk of spending time in a nursing home, either permanently or even for a short rehab stay. Unfortunately, Medicare pays only a small percentage of nursing home costs and vary from individual to individual. A Long Term Care insurance policy provides benefits that help pay for nursing home and home health care.
Frequently Asked Questions
Who should buy Long Term Care insurance?
1. People who want to maintain independence and have a choice of facility, including their own homes, and who want continuity of care.
2. People who are concerned that they might outlive their money (asset protection).
3. Married couples for spousal and/or dependent protection.
When should you buy Long Term Care insurance?
As early as you can. The younger you are when you apply for insurance, the less expensive that coverage is. And health is an important consideration for the insurance company in issuing a policy. Because health tends to deteriorate with age, it is wise to apply for the protection while you can still qualify for it. Remember, money alone does not buy Long Term Care insurance – health does.
Long Term Care Product Providers*
John Hancock, Gen Worth, United Security Assurance, United of Omaha, Transamerica
*not all plans offered in all counties