PROTECTING THE LONG HAUL
for a life well lived
Long Term Care Insurance
We are living longer lives than ever before. Medicines and treatments have allowed people to live long lives with chronic conditions that years ago they would have died from. Living a long life increases the probability that you will experience a time of dependence on others for your day-to-day care. If that happens you only have four options in how that care is received and paid for. It is important to know these options so that you can plan ahead and control how your care is provided if you ever need it.
Many people get overly concerned with their health insurance and/or Medicare, but it’s a lack of Long Term Care coverage that often times will financially cripple you. Over 75% of people need some type of Long Term Care after the age of 65.
It’s not a matter of IF you will need Long Term Care it’s WHEN. When most people think of Long Term Care insurance, they think of a traditional LTC policy, however, there are several different ways to fund long term care outside of the typical LTC policy and the younger you get it the cheaper it is.
Ways to get care
- Family: Having your spouse, children or other family members take care of you is the first option that we rely on. That is OK if the caregiver is physically and emotionally able to do it. But if the spouse is also frail, or if a child can’t take time off from work or has their own busy life. This option can become a huge burden on them.
- Long Term Care Insurance: Covers the costs to have caregivers hired to help you with the caregiving that is needed. Home care coverages include housekeeping chores like laundry and dishes, personal care like help with bathing and dressing. And formal care like rehab and physical therapy. Most people that have long term care coverage will receive their care in their own home. But if care is best received in a facility such as Assisted Living, Adult Family Home, or Nursing Home, the insurance pays for the expenses for being in that facility.
- Self-Insure: Hoping that the need for long-term care will not happen. Many of us will count on our own savings and investment portfolio to pay for care if it does happen. This drain of the nest egg could affect the lifestyle of the spouse or other family members if the care continues for a long time. Sometimes an untouchable family asset needs to be sold to pay for care. If there are not a lot of assets, the spend-down of what money there is may bring someone to have to count on the welfare system (Medicaid) for their care.
- Government Services: This is the most misunderstood option in long-term care. Medicare only provides a maximum of 100 days of rehab following a hospital stay with the expectation of recovery. Medicaid is the welfare program that will pay for your care after you have spent down your assets to very low levels. Your choices of care facilities become limited and Medicaid provides very little home care benefits.
Options now on the market
- Tradition Long Term care as must of us know it
- Home Health Care only Plans
- Life Insurance that has these benefits included
- Single Payment that provides a fixed return and can triple and even give an unlimited amount of coverage for Long Term Care