Long Term Care
Insurance Facts
A list of long term care insurance facts is in order. Have you ever wished you could just find someone to answer one little question for you? It seems I’m always trying to pinpoint one little detail, and I love lists. So, here it is. I hope you find your answer among all the interesting long term care insurance (LTCi) facts.
Long Term Care Insurance Is…
LTCi is an insurance policy which will pay for long term personal care if you should become ill or disabled. There are many different types of policies with equally varying prices. However, the most popular type of policy is a comprehensive one, which should cover 3 levels of personal care.
1. In home care is provided by a home assistant, home health aid, skilled nurse, therapist, or care provider of your choice.
2. Assisted Living facility care is provided in a group home or cluster of homes with varying degrees of privacy.
3. Skilled Nurse Facility care is provided by institutions often referred to as nursing homes.
LTCi Pays…
When you need someone to assist you with one or two daily activities. See levels of personal care above. Benefits are usually tax free.
Medicare Does Not Pay…
For long term care beyond 100 days, or a home assistant. Medicare only pays for skilled nurses. Medicare is not structured to cover long term care only short term care.
To Qualify For Medicaid…
You must use practically all of your own assets first. A spouse or dependent may retain the use of your home and you are allowed up to $2,000 besides your home.
Who Needs Long Term Care
Insurance Coverage
Anyone who expects or should expect to need long term care and does not have the funds or assets to cover these expenses should get coverage. Sixty percent of men who are now 65 will need long term care at some point in their lives. Twenty-eight percent of women who are 65 will need five years of long term care at some point in their lives. Over 40% of those currently receiving long term care are under 65.
Who May Not Need Long Term
Care Insurance Coverage
If you have the finances and assets to cover at least 5 years of long term care, then obtaining long term insurance isn’t necessary. Consult your financial advisor and healthcare giver. You may benefit by saving the LTCi premiums. If, on the other hand, your income is low enough, you may qualify for Medicaid to pay for your long term care. Just remember that there is a limit to the length and amount of that coverage.
Where Does Long Term
Care Take Place?
80% of older patient long term care takes place in home or community settings. Most in home care is provided by family members and friends. One reason that many make the decision to purchase long term care insurance is not because one does not have family and friends to take care of them in their old age but rather that individual does not want to have the friends and families members feel obligated to take care of them if they should need long term care.
Premiums Paid
Annual average premiums paid by policy holders between the ages of 55 and 64 average under $1,000.
Nursing Home Cost
The average nursing home cost for 2006 was over $65,000 annually. If this cost increases by 5% in 5 years the cost will be over $87,000. The cost of a private room in 2006 was under $210, and it will rise above $250 in 2008.
Policy Options
There are thousands of combinations of policy options – comprehensive and non-comprehensive.
Long Term Care
State Assistance
Many states offer some form of LTCi benefits or purchasing incentives. Your local government can supply you with the necessary contacts. Since the cost of living and long term care vary from state to state you can expect this state government funding to vary also.
There are tons of facts available to us. They can be gathered from consultants, compiled into books, mulled over and debated. Facts, however, do not change basic human needs. Our elderly and infirm deserve the best of medical attention and long term care. Hopefully long term care insurance facts will help us to find better ways of providing for ourselves and our loved ones.
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