Long-Term Care
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Long-Term Care
Insurance Shopper's Guide
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for Answers to Your Long-Term Care Questions |
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Long-Term Care insurance is on the minds of
many people today. You are constantly seeing articles on Long-Term Care or having
conversations with friends and neighbors and this is creating much confusion and
unanswered questions.
The following are some real facts
regarding Long-Term Care.
WHAT IS MEANT BY LONG-TERM CARE?
- Long-Term Care covers help with daily activities such as
bathing eating, dressing, or more skilled nursing care or rehabilitation training either
in a nursing facility or at home, also covers cognitive impairment such as
Alzheimer’s and deals with care-oriented conditions, not cure oriented.
WHO PAYS FOR LONG-TERM CARE?
- Many people are under the impression that Medicare, Medicaid
or their health insurance will pay their Long-Term Care costs.
- Medicare has eligibility requirements for skilled nursing
care only and is for a limited time period.
- Medicaid is a welfare program.
- Health insurance and medical supplements do not cover
nursing home care.
- Individual and family through their savings, assets, and
cash pay most of the Long-Term Care costs.
WHO WILL NEED LONG-TERM CARE?
- According to the general accounting office if you are over
65 years of age, the odds of needing care either at home or in a nursing home is
approximately 50%.
WHAT ARE THE COSTS FOR NURSING HOME CARE?
- The national average is approximately $38,000-$40,000 per
year. In east central Pennsylvania the cost is approximately $50,000.
- How many years could you comfortably afford to pay these
amounts and from what assets would they come?
COSTS OF LONG-TERM CARE INSURANCE
- Long-Term Care insurance is easily affordable for most
people. The younger you are and healthier you are when purchasing a policy will keep the
premium down. Purchasing a smaller (affordable) policy at any age is much better than not
having any kind of coverage.
FUNDING OF LONG-TERM CARE
- Long-Term Care whether it be home care, assisted living or
nursing home care represents the greatest out of pocket health expense faced by older
Americans. (Can’t Afford To Grow Old, Walter Cronkite, WNET, 1989)
- With the limited coverage allowed by Medicare and the
possible changes in Medicaid, Long-Term Care insurance is the most efficient method of
funding these costs.
ADVANTAGES OF PURCHASING LONG-TERM CARE
INSURANCE
- There are tax advantages to purchasing a Long-Term Care
policy. Premiums are deductible as an itemized medical expense which must include medical
expenses and premiums that exceed 7.5 percent of adjusted gross income. See our tax
qualified plans section.
THERE ARE ONLY 3 OPTIONS FOR PAYING FOR
LONG-TERM CARE
- BE VERY RICH - The very rich still have homeowners and auto
insurance. They understand leveraging a risk with insurance.
- BE POOR - Welfare (Medicaid which gives you limited
choices).
- BE INSURED - Have a Long-Term Care policy to protect assets,
your dignity and offer you choices.
HOW CAN I GET ADDITIONAL INFORMATION ON
LONG-TERM CARE INSURANCE?
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