What is Long Term Care Insurance?
Long Term Care insurance is an insurance product that helps you pay for the costs of care beyond a predetermined period of time. It generally covers care that is not covered by health insurance or Medicare. People who require long term care are generally not sick in the traditional sense, but instead, are unable to perform the basic activities of daily living on their own. Activities of daily living include dressing, bathing, eating, toileting, continence, transferring (getting in and out of bed or a chair) and walking.
Who Uses Long Term Care
Many people think long term care is for people over the age of 65. This is somewhat true in the fact that 60% of people over age 65 will require some form of long term care services in their lifetime. However, 40% of all people receiving long term care services right now are between 18 and 64 years old.
Why Buy Long Term Care Insurance
There are several reasons of course, but choice and asset protection are two of the biggest ones. Having long term care insurance allows you to pick the location and type of care you receive. Long term care insurance generally covers home care, assisted living, adult daycare, respite care, hospice care, nursing home care and care at Alzheimer's facilities. Without long term care insurance you will have to spend down your assets until they are almost gone and then rely on Medicaid. With Medicaid you may not have all the choices that having long term care insurance can provide.
Asset protection is the other main reason to buy long term care insurance. As mentioned above, if you don't have long term care insurance and you need care, you will have to spend your assets down to almost nothing before Medicaid will kick in. With the cost of care being around $60,000 a year, assets can be depleted quite quickly leaving nothing to pass on to your children.
We have several companies that offer long term care insurance and can help you learn more about this type of plan. Give us a call or contact us by e-mail and we will be happy to help you!
