Long Term Care Insurance
What is Long-Term Care?
Long-term care is the kind of care needed by persons requiring assistance or supervision with the everyday activities of daily living due to physical or cognitive impairments or for persons needing medically necessary care for an acute or chronic condition. Care can be provided at home, an adult day care center, an assisted living facility or nursing home. More than 85% of care today is received outside of a nursing home setting.
The Need for Long-Term Care:
Americans are living longer. When you get old, you may get sick. And when you get sick, you may need care. Providing that care can have a devastating emotional and financial impact on your family and retirement portfolio. Establishing a plan in advance about how you would want to be cared for and providing a way to fund that plan could greatly reduce the stress on your family and help protect your retirement portfolio.
Who Pays for Long-Term Care?
People with assets usually end up paying for long term care out of their own pockets. Government programs cover much less than most people think. Medicare doesn’t pay most nursing home bills. Certain conditions apply and for those who qualify, coverage is typically for short term skilled care. Medicare does not pay for custodial care. Medi-Cal in California pays a large portion of nursing home expenses for those who have spent down their assets to the state required level ($2000 or less in most states). Even then it may not cover care at home, where many people would prefer to be when receiving care.
How to Buy LTC Insurance.
There are many companies selling LTC insurance policies. Be sure to choose one that is financially sound. These policies offer a substantial number of options and the premiums and underwriting vary. It is obvious that you should seek an agent that is an expert in LTC insurance. An honest discussion with an expert LTC insurance agent will help you to choose the plan that’s right for you.