LONG-TERM CARE MAKES A DIFFERENCE
Like many things people do not want to think about, preparing yourself for the time when you will need long term care is often put off. For most people, they do not realize the magnitude of long term care costs until they themselves or a loved one is in need of long term care services. When the time comes to use long term care most people are very limited in their options because of a lack of information, resources, and ultimately preparation. By properly planning for your future long term care costs you can ensure yourself a variety of options as to what kind of environment you live your final days in and the cost at which you do so.
Having said this, protecting yourself and your assets from the future costs of Long Term Care does not have to be a daunting proposition. With the protection provided by a Long Term Care insurance policy you are able to protect your assets, your quality of life, your happiness, and are able to prevent yourself from being a burden on loved ones. A tax qualified long term care insurance policy will provide tax-free benefits covering the costs of in-home care, facility-based care, nursing homes, and hospice care.
Long Term Care insurance is technically defined as a supplemental type of health insurance that is designed to provide coverage for no less than 12 consecutive months. LTC insurance may provide services for personal care, rehabilitative, maintenance, diagnostic, preventive, and therapeutic services at a setting other than an acute care unit of a hospital. Benefits of an LTC policy are typically provided on a reimbursement basis and are payable up to specified monthly and lifetime maximums.
Your costs for long-term care services can vary greatly depending on amount and type of care you are in need of. In-home care for example is generally less expensive than facility based care costs. At home care costs can vary depending on the type and amount of assistance. Facility based care costs vary depending on what kind of accommodation and assistance is provided, for example, options such as semi-private rooms are less expensive than private rooms. Since no one knows what kind of care they will eventually receive it is important to properly prepare yourself for any costs that may arise.
NEEDS BASED STATISTICS
- 2/3 of all people over age 65 will need LTC services
- 40% of all people currently receiving LTC services in the U.S. are between the ages of 18 – 64
- Medicare only covers up to 100 days of LTC services
- Nationally Medicare only covers 20% of LTC costs
COST BASED STATISTICS
- The cost of long term care services in the U.S. has increased for the 6th consecutive year
- The National Average cost of part time In-Home Aide is $23,665/year
- The National Average cost for care in an Assisted Living Community is $36,092/year
- The National Average cost for care in a Nursing Home is $76,284/year