WHAT IS LONG TERM CARE INSURANCE?
   

  • Long Term Care Insurance provides for a person’s care in case of chronic illness or disability especially when an individual cannot independently manage the essential activities of daily living. Example: Feeding, dressing, bathing, toileting and walking, as well as moving one’s self from a bed to a chair. Disability is not confided to physical situations only, they can include mental as well, such as Alzheimer’s disease.
       
  • Long Term Care Insurance provides coverage for a list of care giving services for the chronically ill, the disabled, the serious injured and the elderly. This care can be provided in a skilled nursing facility, a nursing home, a mental hospital, an assisted living facility, in a person’s home with a registered nurse, licensed practical nurse or a nurse’s aid.

    WHO NEEDS LONG TERM CARE?

       
  • Everyone, although the elderly rely on Long Term Care most frequently, younger persons who have chronic illnesses, severe disabilities or have experienced a serious injury may also benefit from have LTC.
       
  • The United States Census Bureau is projecting that the population ages 65 and over will be 39.7 million in 2010, 53.7 million in 2020, and 70.3 million in 2030. The U.S. Department of Health & Human Services estimate that people reaching 65 face at least 40% lifetime risk of entering a nursing home and 10% of them five years or more.
       
  • As of 2003, at least 6.4 million people aged 65 and over require LTC; one in two people over the age of 85 require this kind of care now, and at least half of the population who are over the age of 85 will need help with ADLs.
       
  • Because women currently live longer than men, they are faced with a 50% greater chance of entering a nursing home after 65.
       
  • Many people who start paying for nursing home care find their life savings threatened when one or both spouses require care.

WHAT ABOUT MEDICARE AND MEDICAID OR PERSONAL HEALTH INSURANCE?
   

  • The federal/state Medicaid Program is available, but the criteria to qualify for assistance are strict. To meet guidelines you must demonstrate the financial need to receive assistance. Most individuals must deplete all of their savings and assets before becoming eligible for any benefits. LTC helps the patient from having to rely on government-assisted programs.
       
  • Medicare may cover a month or two of home health care after a stay in the hospital, but benefits are then usually capped.
       
  • Medicare Supplements do not cover long-term care situations.
       
  • Individual and Group Health Insurance does not cover nursing homes or health care at home.
       
  • Even part time at home assisted care can easily costs $3,000 or more a month plus skilled help. (Therapists, etc).
       
  • At current rates, one year in a nursing home could run from $70,000 - $100,000 per yr.
       
  • Many people who start paying for nursing home care find their life savings threatened when one or both spouses require care.
       
  • Because women currently live longer than men, they are faced with a 50% greater chance of entering a nursing home after 65.
       
  • Don’t wait until you are completely uninsurable to request coverage.

WHAT’S COVERED AND WHAT DOES LTC COST?
   

  • BENEFIT AMOUNT: The amount of your premium depends on the amount of the daily benefit you choose and how long you wish that benefit to be paid. EXAMPLE: A policy that pay $100.00 per day for up to five yrs. costs more then a policy that pays $50.00 per day for three yrs.
       
  • WAITING PERIOD: Is number of days you must be residing in a nursing home or the number of home care visits you must receive for the policy benefits begin. The longer the elimination period the lower the premium.
       
  • COVERAGES: Policy covers skilled, intermediate, and custodial care in a state-licensed nursing home. Also includes home care services, such as skilled or non-skilled nursing care, physical therapy, homemakers, and home health aides provided by state-licensed or Medicare-certified home health agencies.
       
  • INFLATION PROTECTION: Increases your daily benefit amount to keep pace with the rising costs of long-term care services.
       
  • WAIVER OF PREMIUM: Provides that after you satisfied your elimination period, you do not have to pay further premiums along as you continue to receive benefits for nursing home confinement, assistant living facilities or home health care services.
       
  • PREMIUM DETERMINATION FACTORS:

     

  • Age and current health

  • Elimination/Waiting period you choose 30/90 days.

     

  • Pre-existing conditions

 

WHAT ELSE IS IMPORTANT TO KNOW?

Life Insurance / Annuities Critical Illness/Accelerated Death Benefit:
   

  • Most recent life insurance policies include the above provisions that allow policyholders to use survivor death benefits for health care needs. However, there may be hidden clauses in the contract that limit coverage. Consult our Life & Health Specialist if you have any questions about your current life insurance policy. We have available life products, which can be used dually to cover long-term care.
       
  • Its Important to know that health insurance, Medicare and Medicaid may not pay for long term health care, together our life and health specialist can discuss how a LTC policy may be able to protect your savings and needed extended coverage for your loved ones.
       
  • IRA’S, Roth, Fixed, Variable and Annuities of all types may also include critical illness, and nursing home care withdrawal provisions to assist financially in emergency situations. But nothing replaces a long term care policy to protect your savings and retirement.