Before you decide whether
long
term
care
insurance
is for you, you probably are wondering
what long term care is. Fortunately it's relatively easy to
find answers to this question by searching on the Internet.
Unfortunately, what you read about long term care may not be
accurate, or maybe it's too confusing. Or worse yet, you're
frantically looking into LTC insurance because suddenly you find
yourself in a position of need and you just don't have time to
really research and understand what LTC
insurance
covers
or whether you even need it.
What is Long Term Care?According to Wikipedia,
long term care is defined as, "A variety of services which help
meet both the medical and non-medical need of people with a chronic
illness or disability who cannot care for themselves for long
periods of time." Basically, anyone who develops disabilities or
chronic care needs resulting from conditions such as
Alzheimer's
disease
and Related Dementia (ADRD), Parkinson's
and other central nervous system conditions, stroke, broken hips or
related Injuries (Osteoporosis, joint replacement, etc.) may be in
need of long term care. In short, LTC is the care people need when
they are unable to perform the activities of independent living
such as bathing, dressing, toileting, continence, or eating.
Additionally, LTC may be needed if the person requires care and
supervision due to a severe cognitive impairment such as memory
loss, dementia, etc.
What is Long Term Care Insurance?
Long-term care insurance (LTCI)
typically helps pay for the care you might need as the result of
those disabilities as mentioned above. It covers personal care,
homemaker services, skilled nursing care, and physical therapy.
Care can be provided in a variety of settings as well,
including:
Depending on your policy and condition, varying amounts of care can
take place in a variety of locations, and can range from a few
hours of care per week at home to round-the-clock care in a nursing
home.
The Basics of LTC and LTC InsuranceThere are three key
things you need to consider when evaluating whether long term care
insurance is for you:
- Selecting the Maximum Monthly Benefit - this is the maximum
amount of money the long term care
insurance
provider
will pay you to receive care on a
monthly basis
- Selecting the Benefit Period - this is the maximum number of
years the long term care insurance provider will pay your maximum
monthly benefit
- Selecting the Deductible Period - also called the "elimination
period", this is the number of days between beginning to receive
care and when benefits are paid
It's crucial to realize that these are the only required
benefit selections for any long term care insurance provider; all
other selections are optional. Make sure your agent
helps you choose the right selections for you.
Although many of us tend to ignore the need for long term care,
or simply hope that nothing happens during our lifetime, the fact
is just about all of us will in some way, shape or form have an
experience when a loved one needs long term care.
Still not sure about LTC insurance? Consider this:
- 12 million people currently receive long term care
- 82% are cared for at home or in Assisted Living
- Only 18% are in nursing homes
- 39% of those needing long term care are aged 18-64
The average length of care varies but regardless of how you look at
it, even a year can turn out to be very expensive:
- Nursing home - 2.4 years
- Home health care - 4.5 years
- Life span of an Alzheimer's patient - 4.9 years
Most of us probably don't realize just how much long term care
costs (if you had to pay by cash). Be prepared:
- Home health care runs about $18/hour = $66,000/year
- Assisted living can cost $85/day = $30,288/year
- Adult day care may be $55/day = $20,075/year
- Nursing homes are expensive: $192/day = $70,080/year
Long term care insurance may not be for everyone, but
everyone should consider it
, especially as each
generation continues to live a longer life. Let's make sure it's
a happy one.
Source: Free Articles from ArticlesFactory.com
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