Long Term Care Insurance Explained

Mother and Daughter talking about if and when she will need long term care.
Will I Need Long Term Care?

What is it and when would you want long term care insurance? Most people think that only seniors need long term care, but the reality is that nearly half of people who are disabled are under the age of 65.

Long term care services are needed by people who have lost their ability to care for themselves because of a chronic illness or condition and not solely due to age.

When Will You Need Long Term Care?

You will need long term care when you need one of the following two items.

1. Needing assistance with 2 out of 6 Activities of Daily Living (ADL) and that condition is expected to last at least 90 days.

  • Dressing
  • Bathing
  • Eating
  • Incontinence
  • Transferring (moving to/from a bed or chair)
  • Toileting

2. Cognitive impairment and not being able to manage life on your own.

You might be able to do everything by yourself, but mentally not be responsible for yourself.

Four Long Term Care Settings

Once you need care, there are four places you can receive care. Most long term care policies cover care in all four, but may not pay the full benefit in all areas. Most people are able to start or receive most of their care at home. Make sure you are not shorting your coverage in these particular areas.

  • Skilled Nursing Facility
  • Assisted Living Facility
  • Home Care
  • Adult Day Care

How Can You Pay for Long Term Care Expenses?

There are four ways to pay for your care when you need long term care.

  1. Government. Medicare will cover skilled nursing for up to 100 days if you were admitted in-patient to the hospital for at least 3 full days. Medicaid will pay for skilled nursing care, but only if you have very limited resources.
  2. Family. Often times family members care for their parents or one another. Many times this is the solution if you don’t have resources to pay for assistance. We find that this causes stress for caregivers.
  3. Your Savings. If you have no other protection, then your hard earned savings are the only protection you have. Ask yourself, “How long will my savings last? Will it provide for my spouse when they need care too?”
  4. Long Term Care Insurance. You can use long term care insurance to help pay for your care. The premium is based on your age, so the younger you can put something in place, the less expensive it will be in the long run.

We Are the Long Term Care Insurance Experts

At Imagine Insurance Advisors, we understand that determining if long term care insurance is right for you can be a daunting task. Our business was founded on long term care insurance, so feel free to schedule a meeting to determine if it is appropriate and affordable for you.