Adults are living longer today and have a greater chance of needing non-medical care in their later years. Non-medical, long-term care consists of help with daily life activities, such as bathing and getting dressed. A home health aide who visits you three times per week can cost more than $20,000 per year. “Full-time nursing home care, the most expensive type of care, now averages $69,000 to $78,000 per year.”—Life Foundation
Long-Term Care Insurance pays for this care, whether in your own home, an assisted living facility, or a nursing home. If you are unable to care for yourself due to disability, a chronic illness, or a cognitive impairment like Alzheimer’s, having Long-Term Care insurance will protect you financially.
Here’s another fact to consider: Medicare doesn’t pay for “custodial care.” Medicare pays only for medically necessary, skilled nursing facility or home health care. It may not give you the choice of the best care in your area. And while Medicaid pays for certain types of care for the low-income elderly, who is eligible and what services are covered varies from state to state, and is determined by such things as income and personal resources.—Daily Finance
“Many folks wrongly believe that letting the government pay for their anticipated long-term care needs is the best solution, but Medicaid programs are in trouble funding-wise in every state,” says Wilma Anderson, a registered financial consultant. “In the future Medicaid may become even harder to qualify for. If you don’t plan for LTC, you may have limited or no choices to pay for care when your health changes.”
So how do you decide whether Long-Term Care insurance is right for you? If you have substantial savings or assets you’d like to pass on to your heirs, you’d want to consider LTC. If nursing home care would deplete your entire income, you don’t want to burden your children, or you’re adamant about wanting to stay in your home to receive care, then LTC is a smart decision.
“What are the odds you’ll need long-term care insurance? Greater than you might imagine. There’s about a 70 percent chance you’ll need some type of long-term care after age 65. And long-term care services are not just for older people. A young or middle-aged person who has been in an accident or suffers from a debilitating illness may very well require long-term care services. In fact, 40 percent of patients receiving long-term care are under age 65.”—Life Foundation
Long-Term Care insurance can bring you the much-needed peace of mind to ensure you are well-taken care of and financially stable in your future.