LTC Long Term Care Insurance

 

LTC Long Term Care Insurance or Long Term Care Planning. Most people believe they are likely to live a long life.  However, when you live a long life, you are more likely to need long term care. Maybe you have seen this with an aging parent, a friend, relative or neighbor.  When the need for long term care occurs, will you be prepared?

Planning ahead for future long term care needs is a key part of retirement planning.  Long term care is the greatest healthcare expense older American’s face.  Medicare only provides short-term recovery care after you have been hospitalized for 3 days or more.  Medicare does not pay for custodial care in your home.

Long term care insurance can protect your retirement assets.  Plus it gives you the peace of mind knowing you can cover the cost of long term care if you need it today or in the future.  A long term care plan also protects your family from having to be caregivers.  It enables you to choose where you will receive care.

 

If you would like to know more about LTC Long Term Care or any other service on the site, please fill out an inquiry, send us an email or give us a call. A professional from our team will reach out.

Click HERE to go to our contact page. A form is also available at the bottom of this page.

 

 

WHAT IS LTC Long Term Care?

Long term care is the assistance needed when a person is unable to manage their own personal care needs or when they need help with activities of daily living.  Such as eating, bathing, dressing, getting up and transferring around your home, going to the bathroom or controlling your bowels.  This type of care is also referred to as custodial care.  It is different from traditional medical care you have received throughout your life.  It is not typically provided by doctors and it isn’t designed to cure you of an illness.  It is the kind of help you might need if recovering from an accident, a serious illness, surgery with complications or simply going through the natural, but often debilitating process of getting older.  Long term care is also received when you have a cognitive impairment, like dementia or Alzheimer’s.

People receive long term care services for a variety of reasons and in various settings. You can receive care in your home, an assisted living facility, a board & care, adult day care centers and in nursing homes.

FREQUENTLY ASKED QUESTIONS?

Q – DOES MY HEALTH INSURANCE COVER LONG TERM CARE?

A – No, traditional health insurance pays for skilled care that is medically necessary.  It does not pay for long term custodial care.

Q – WHAT CAN I EXPECT FROM MEDICARE OR MEDICAID?

A – Medicare is your health insurance when you reach age 65.  Like your health insurance, it does not cover long term custodial care.  Medicaid will help pay for long term care but you must be impoverished to qualify.  It is a MEANS based program.

Q – WHY SHOULD I CONSIDER THIS COVERAGE NOW – ISN’T LONG TERM CARE INSURANCE FOR OLD PEOPLE?

A – Long term care is not for seniors only.  40% of people using long term care services today are under the age of 65.  The younger you are when you purchase long term care coverage, the cheaper it is.

Q – HOW MUCH DOES THIS COVERAGE COST?

A – It depends on the coverage you choose and your health.  This is not a one-size-fits-all coverage.  Long term care coverage can supplement the services provided by your family or cover the entire cost of home care, assisted living or nursing home care.  You could also co-insure a portion of the care to help keep the premiums down.

Q – WHAT IS THE DIFFERENCE BETWEEN DISABILITY INSURANCE AND LONG TERM CARE INSURANCE?

A – Disability insurance will replace a portion of your income if you cannot work due to an illness or injury.  Disability insurance is available only until your retirement age under social security.  Long term care insurance pays for care and expenses either in your home or a facility if you cannot perform your activities of daily living or have a cognitive impairment.  Once you are approved for long term care coverage, you can maintain this coverage for your lifetime.

Q – WHAT IF I PURCHASE COVERAGE AND NEVER USE IT?

A – There are features in the stand-alone long term care policies that allow you to receive a return of premium if benefits are never used.  You can also purchase linked/hybrid long term care plans.  These plans link life insurance or an annuity with long term care so that whatever funds are not used from the long term care pool of money will be inherited by your heirs in the form of a death benefit or the remaining value of the annuity. 

PLAN DESIGN

BENEFIT AMOUNT – The dollar amount of benefit you will receive each month if you go on claim.  Typical monthly benefits range from $3,000 to $10,000.

LIFETIME MAXIMUM BENEFIT – The total pool of money available to spend on care if you go on claim.  You can have as low as a 2-year benefit period and as high as an unlimited or lifetime benefit period.

ELIMINATION PERIOD – Think of this as a deductible, just like your other insurance policies.  With long term care coverage, this is expressed in days instead of dollars.  It is the length of time that you pay for care before the insurance starts to pay.  The longer the deductible period, the lower the cost of the premium.  Typical elimination periods are 30, 60 and 90 days.

INFLATION PROTECTION – This is a feature which increases the value of your benefit each year to help keep up with the cost of care or inflation.

SHARED CARE – This is a rider which allows you and your spouse to link your policies or share them.  Unused benefits transfer to the surviving spouse or if a spouse uses up their pool of money, they can dip into the healthy spouses pool of money for their care.

PLAN FEATURES

PREMIUM DISCOUNTS – You may be eligible for spouse/partner discounts, as well as good health discounts. 

PORTABILITY OF COVERAGE – Your coverage dollars are portable even if you move to another state or if your Employer offers group long term care.  You can take the coverage with you and pay for it personally if you leave your employer.

TAX QUALIFIED – Your premiums may be tax deductible if you have a business.  Depending on how your business is structured, you may deduct 100% of your premiums, you can discriminate on who you offer the coverage to and the benefits to you are tax free.

WAIVER OF PREMIUM – Once you qualify for benefits and satisfy your elimination period, premiums are often waived as long as you remain on claim.