PLANNING FOR LONG TERM CARE
70%: Percentage of people turning age 65 who will need some type of long-term-care services in their lifetimes.
48%: Percentage of people turning age 65 who will need some type of paid long-term-care services in their lifetimes.
24%: Percentage of people turning 65 who will require paid long-term care for more than two years.
15%: Percentage of people turning age 65 who will spend more than two years in a nursing home.
2.2 years: Average duration of long-term-care need, men.
67.9%: Percentage of people in long-stay nursing facilities who are women.
PROTECT YOUR RETIREMENT WITH LONG TERM CARE
LONG TERM CARE INSURANCE
Astronomical costs of long-term care for chronically disabled people are often paid by Long-term care insurance. Lon-term care insurance covers custodial care assistance in a nursing home, assisted living facility, or in the patient’s own home with daily living activities like showering, eating, and getting dressed.
Long-term care insurance demand will likely become more apparent as most people are living longer now. According to government statistics, 70% of American people aged 65+ will want long-term care.
The average cost per year in a nursing home is a staggering $89,292 for a semi-private room and approximately $100,380 for a private room as of today.
Home health care expenditures are also exceptionally high. Home health care services provided three days a week can cost extensively high around $20,000 per year.
REGULAR MEDICAL INSURANCE USUALLY DO NOT COVER LONG TERM CARE
these do not offer long-term-care coverage:
Medicare only offers limited health care and nursing home coverage. For more info please visit Medicare.gov.
Medigap does not extend coverage for long-term care benefits outside of medicare limits thus only filling the gaps left by medicare. For more info please visit Medicare.gov.
Employee Group Health and Medical Plans only offer minimum long-term care insurance coverage.
In Medicaid, to become eligible for nursing home coverage, individuals are required to spend almost all of their assets and savings.
Premiums for long-term care insurance may be subjected to a deduction for income tax purposes in some scenarios, which act as an added benefit.
Long-term care insurance is considered a new form of insurance coverage offering insurance policies that differ exceptionally in cost and benefits, ultimately making it difficult to compare policies and make a choice. here at American pension and retirement services, consulting with an advisor can aid you to sort through the options.
LONG-TERM CARE INSURANCE ELIGIBILITY
A long-term care insurance plan is for you if:
You need to enter a nursing home or assisted living facility as you do not want to be dependent on your family.
You are concerned to protect your assets and maintain your financial freedom.
You can afford premiums for long-term care.
You comply with policy restrictions, including pre-existing medical conditions exclusions and waiting periods.
You want to try to stay in your home requiring long-term care.
LONG TERM CARE INSURANCE FEATURES, COVERAGE AND RATES
Features to consider for long-term care insurance are as follow,
Flexible Benefit Triggers forces the insurance company to start paying you benefits. If you need assistance to perform at least two of the daily living activities (ADL) including dressing, bathing, eating, toilet using, continence, moving from chair to bed, and taking medication then your policy benefits should be triggered. Cognitive impairment should be considered another trigger, which means coverage applies if you are mentally impaired, doesn’t matter if you are physically able to care for yourself.
Guaranteed Renewable assures that you will continue your coverage without any additional medical examinations.
Broad classification of Nursing Home Care is offered for any nursing home-skilled, respite, intermediate care, or custodial care.
Home Health Care coverage ensures your policy pays benefits for care at home and in a nursing home or an assisted living facility. You may be forced to be institutionalized to receive benefits by policies that only cover institutional care.
Company Rating assures the insurance company is highly rated, stable, and financially healthy to offer you benefits when you need them the most.
Inflation Rider will ensure increasing your daily benefits to keep pace with inflation. This feature can be costly but it will protect you against the rising cost of long-term care.
Coverage levels: Daily benefits for a long-term care insurance policy usually range between $30 to $200. This daily benefit need depends on nursing homes and home health care expenditures in your area, and how much you can devote from other external sources like your investments and saving accounts.
Rates: Various factors including your age, benefit amount, waiting period until first benefit payment, and other policy features generally affect policy rates.