Long Term Care Insurance

Today people are living longer and everyone is worried about the rising cost of health care. One of the fastest growing concerns is how to manage the cost living longer.  Contrary to what one might think, many long termcare services are not typically covered by any other kind of insurance, including health and long term disability insurance.  Only long term care insurance policies cover the day-to-day assistance when you have a chronic illness, disability or cognitive impairment.  As for the government programs, Medicare pays only for short periods of care.  Medicaid covers only the very poor -- those whose assets are at or below state requires levels.  Medicaid will not pay for custodial care, adult day care, or assisted care living facilities. 

People often think of Long Term Care insurance as "Nursing Home Insurance".  However, Long Term Care insurance provides for skilled, intermediate and custodial care. It helps you stay independent as long as possible, enabling you to remain in your home, choose an assisted living facility, adult day care or nursing home. Additionally, coverage due to a mental disorder or cognitive impairment is another component of the policy. Limitations to perform two or more of your activities of daily living ie: eating, bathing, dressing, toileting, continence and transferring will activate the policy.

Unfortunately, most health care plans don't cover these costs and no one wants to spend down the assets that they have worked so hard to accumulate during their career. One should consider Long Term Care if:

• You have assets and income you want to protect.
• You want to avoid burdening your family with extensive caregiving responsibilitees.
• You don't want to depend on government programs for care.
• You want to be able to choose whre you receive care.
• You want to receive high quality care.

Caregiving for a family member is often a stressful and difficult experience. It can mean time spent arranging for care or hours devoted to looking after a family member. This is especially hard on people trying to juggle the responsibilities at home and work. On average, one year in a nursing home or 24-hour care can cost more than $66,000 per year, a good reason to consider Long Term Care Insurance.

Other reasons to consider Long Term Care:

• It can be offered at discounted group rate through your company or association.
• Tax savings benefits and executive carve outs are added value to enhance benefit offerings at the work site.
• Premiums can be deducted on an individual basis. ( Check with your financial advisor for your personal tax situation.)