Long-Term Care Insurance
Long-Term Care Insurance Information
Long-Term Care insurance will help address these problems:
- reduce reliance on family assets, including retirement savings
- avoid financial burden on younger generations
- chosing between affordability and quality of care
- limited control when relying upon Medicaid
Click here for a guide developed for CA residents by the department of aging.
From LifeHappens.org, watch this short, general overview video: https://youtu.be/T1RmHZy2_JA
Call or schedule time with me to discuss how you might protect yourself from unwanted impacts due to Long-Term Care needs.
What is Long-Term Care?
Because of age, mental or physical illness, or injury, some people find themselves in need of help with eating, bathing, dressing, toileting or continence, and/or transferring (e.g., getting out of a chair or out of bed). These six actions are called Activities of Daily Living–often referred to as ADLs. In general, if you can’t do two or more of these activities, or if you have a cognitive impairment, you are in need of “long-term care.”
Long-Term Care isn’t a very helpful name for this type of situation because, for one thing, it might not last for a long time. Some people who need ADL services might need them only for a few months or less. For situations like post-operative care in a facility other than a hospital, up to 90 days of this care is often covered by medical plans, including Medicare. It's after 90 days of this type of care that you may have to cover the cost yourself (with or without LTC insurance).
Where does Long-Term Care take place?
Long-Term Care may occur in the home, an adult day care center, an assisted living facility, or a skilled nursing facility (nursing home).
Assistance with ADLs, called “custodial care,” may be provided in the same place as (and therefore is sometimes confused with) “skilled care.” Skilled care means medical, nursing, or rehabilitative services, including help taking medicine, undergoing testing (e.g. blood pressure), or other similar services. This distinction is important because generally Medicare and most private health insurance pays only for skilled care–not custodial care.
What is the retirement gap caused by LTC?
Probably the biggest risk and concern for people is the cost of Long-Term Care during retirement years. These added costs mount up and are a drain on assets. 70% of people age 65 and over are expected to need some form of LTC. The income/expense gap created by this need may be addressed in part by Long-Term Care insurance.
Are all types of Long-Term Care insurance "use it or lose it?" - No.
Long-Term Care insurance (LTCi) currently is offered in two forms: traditional and hybrid.
Traditional LTCi provides a benefit pool and is sized based on premiums, which may increase over the life of the policy. Most often, these types of policies start out lower in price.
Hybrid LTCi is typically based on a Whole Life policy such that, if the benefits remain unconsumed, a death benefit will be paid to named beneficiaries or trusts. These types of policies may have other features, like access to cash that accumulates over time, and in the case of one carrier - a lifetime of benefits for those concerned with caring for those with Alzheimers and the like.
Give me a call and we can discuss your particular needs for this type of insurance, or simply schedule time with me on my calendar.