Did You Know?
Of those turning 65 years of age or older:​
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70% will require some type of long-term care services in their lifetime.
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48% will need some type of paid long-term services in their lifetime.
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24% will require paid care for 2 years or longer.
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15% will spend more than 2 years in a nursing facility.
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67.9% of those in nursing facilities longer than 2 years are women.
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The average duration of long-term care for women is 3.7 years and 2.2 years for men.
PROTECT YOUR RETIREMENT INCOME WITH LONG-TERM CARE INSURANCE
The Basics
Astronomical costs of long-term care for chronically disabled people are often paid by Long-term care insurance. Long-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.
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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 require 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.
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Home health care expenditures are also exceptionally high. Home health care services provided three days a week can cost a staggering $20,000 per year.
Regular Health Insurance Usually Does Not Cover Long-Term Care
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Medicare only offers limited health care and nursing home coverage. For more info please visit Medicare.gov.
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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.
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Employee Group Health and Medical Plans only offer minimum long-term care insurance coverage.
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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.
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Long-term care insurance is considered a new form of insurance coverage providing insurance policies that differ exceptionally in cost and benefits, ultimately making it difficult to compare policies and make a choice. At American Pension and Retirement Services, consulting with an advisor can help you sort through the options.​
Is a Long-Term Care Policy for You?
A long-term care insurance plan is for you if:​
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You need to enter a nursing home or assisted living facility but do not want to be a burden on your family.
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You are concerned about protecting your assets and maintaining your financial freedom.
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You can afford premiums for long-term care.
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You comply with policy restrictions, including pre-existing medical conditions exclusions and waiting periods.
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You want to try to stay in your home if you do require long-term care.​
What Factors Should You Consider When Shopping for a Long-Term Care Plan?
​Flexible Benefit Triggers force the insurance company to start paying you benefits. If you need assistance to perform at least two activities of daily living (ADL), which includes dressing, bathing, eating, using the toilet, continence, moving from chair to bed, and taking medication, then your policy benefits would be triggered. Cognitive impairment can also be considered a trigger, which means coverage applies if you are mentally impaired, even if you are physically able to care for yourself.
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Guaranteed Renewable assures that your coverage will continue without any additional medical examinations.
Broad classification of Nursing Home Care is offered for any nursing home-skilled, respite, intermediate care, or custodial care.
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Home Health Care Coverage ensures your policy pays benefits for at-home, nursing home, and assisted living care. Institutional care policies only pay benefits that cover institutional care.
Company Rating assures that the individual insurance company is highly rated, stable, and financially healthy to offer you benefits when you need them the most.
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An Inflation Rider will ensure your daily benefits increase to keep pace with inflation. This feature can be costly but it will protect you against the rising costs of long-term care.
Coverage Levels are daily benefits for a long-term care insurance policy, usually ranging from $30 to $200. This daily benefit amount is based on nursing homes and home health care expenditures in your area, and how much you can contribute from other sources, like your investments and saving accounts.
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Rates vary based on factors such as age, benefit amount, waiting period until first benefit payment, and other policy features.