Long Term Care Insurance
What is Long-Term Care Insurance?
Long-term care insurance is designed to help cover the costs of care when you need assistance with everyday activities like bathing, dressing, or eating due to a chronic illness, disability, or cognitive impairment. Unlike traditional health insurance, long-term care insurance helps pay for services that aren’t typically covered by Medicare, such as extended care in your home, assisted living facilities, adult day care, or nursing homes.
Why is long-term care coverage important?
Many people mistakenly believe Medicare will cover all long-term care expenses. In reality, Medicare only pays for skilled nursing care under very limited circumstances, and only for short periods — leaving most long-term care costs to be paid out of pocket.
Long-term care can be surprisingly expensive. According to recent studies, the average annual cost for a semi-private room in a skilled nursing facility exceeds $100,000 — and these costs are rising. Without insurance, your retirement savings could be quickly depleted by just a few years of care.
Who should consider long-term care coverage?
Long-term care insurance can be an important safeguard for anyone who wants to protect their retirement savings and preserve their financial independence. It can help you avoid becoming a financial burden on loved ones, giving your family more choices about how and where you receive care.
Keep in mind: the younger and healthier you are when you purchase coverage, the more affordable your premiums will likely be.
What does long-term care insurance typically cover, and how do benefits work?
Coverage can include:
- Care in your own home, such as help from a home health aide
- Services in adult day care centers
- Assisted living facility expenses
- Nursing home care
- Memory care for conditions like Alzheimer’s disease
- Some policies even cover care coordination services and caregiver training.
Most policies reimburse you for eligible services up to a daily or monthly limit, after a waiting period. Many plans offer inflation protection to help your benefits keep pace with rising care costs.
Will Medicaid help instead?
Medicaid may help pay for long-term care, but only after you spend down most of your assets to meet income and resource requirements. This can mean your nest egg and property may be exhausted before you qualify. Long-term care insurance helps you plan ahead and protect your savings while still getting the care you need.
Ready to learn more?
Contact our team today to discuss your options and design a plan that fits your needs and budget.
