Understanding Long-Term Care Insurance
Long-Term Care Insurance (LTCi) is specifically designed to reimburse you for expenses incurred for everyday living assistance, as a result of your inability to perform basic functions. Traditional medical insurance and Medicare will not cover extra costs should you need help with the activities such as bathing, eating or just getting out of bed. LTCi can offset the costs of nursing homes and home health care expenses.
Long-Term Care is often mistakenly considered an issue affecting only the elderly but, according to the National Family Caregiving Association, more than 50 million Americans are serving as caregivers for their aged or chronically ill family members. In a 2017 genworth.com market survey of nursing homes, the average cost of a private nursing home room was $ 82,123 per year with an average need of 2+ years, and costs continue to rise.
Long-Term Care Insurance can be an effective way to provide for your care or that of a family member and protect your assets from being consumed by the cost of care. However, it isn’t for everyone. For instance, as with life insurance, it gets more expensive the older you get. LTC Insurance can also be excessively expensive or unavailable if you are already sick or disabled. Before you purchase LTC insurance anywhere here are a few other considerations:
- Do you have other insurance that will respond to LTC needs?
- Do you have sufficient assets outside insurance to cover these costs?
- Do you have enough assets to warrant purchasing the insurance to protect those assets?
- Is the insurance worth it, given how insurers have been increasing premiums?
If you don’t know the answers to these questions, let’s find you the answers together. Contact me for a no cost or obligation to see if LTC is affordable for you.