Due to scientific and medical advances, people are living longer than ever before. There are now more people over the age of 100 than any other time in history.
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LTC Insurance Blog
Simplifying the process of understanding Long Term Care, and helping you decide if Long Term Care insurance is right for you.
As you know, Long Term Care insurance is meant to provide assistance in the event of a nursing home stay. You may not know that many policies insure against the financial consequences of a nursing home stay and also provide coverage for Assisted Living Facilities. These facilities provide a range of care, depending on the patient’s needs, but do so in a setting which feels much more like home.
Many people assume Long Term Care insurance is meant to cover nursing home care only. This was true of the very first Long Term Care policies, but today’s policies have evolved to offer more options to policy holders, including Home Care. A good Long Term Care policy can actually allow you to stay in your home longer.
There are two classifications of care usually associated with a Long Term Care claim. They are Custodial Care and Skilled Care. Be sure to understand which types of care you are eligible for under your Long Term Care policy.
The absolute worst time to have to pick a live in community for someone you love is when you have no choice. In theory, a family should have time to look over the various types of residences and communities, ask questions, and gather information before making a decision. Then, make a well thought out decision based on needs, and all the evidence and information that has been gathered. This allows for calm, well thought out decision.
Just like your health and auto insurance, LTC policies have a deductible. For Long Term Care policies, the deductible is called the Elimination Period. This is the period of time your Long Term Care costs will be paid out of pocket before your benefits kick in.
It’s a prudent and logical question for upper-middle and high income individuals to consider as they ponder purchasing Long Term Care insurance as part of their retirement plan. Having helped many such individuals plan for their future long term care needs, I’ve come to the conclusion that many, who think they have adequate capacity to pay for extended care giving services out-of-pocket, haven’t done the math as thoroughly as they should.
When counseling clients, some will say, “I think we have enough in our retirement savings to handle any long term care needs that might arise.” They may be right. With a few follow-up questions, I learn that they might have anywhere between $500,000 and several million dollars in retirement savings and investments. By providing additional information, I’m usually able to encourage a more realistic look at how far their retirement nest egg will last should they need extended long term care. Here are the key cost considerations that are often overlooked.