Long Term Care

Long-term care (LTC) refers to services designed to help people perform the functions of day-to-day living. Some long-term care is aimed at providing help with day-to-day activities for people with a chronic illness, or cognitive impairment, such as dementia. Other long-term care services may be rehabilitative, helping someone regain function after a serious injury.

Because neither medical insurance nor Medicare is designed to pay for long-term care services, long-term care insurance can help provide a way for you to pay for this care. Long-term care insurance can help you retain assets set aside for retirement and can help you remain independent by providing the money to allow you to decide where and how your care will be provided.
Consider these statistics:
  • 40% of LTC recipients are adults age 18 - 64.1
  • 70% of individuals over age 65 will require at least some type of long-term care services during their lifetime.2
  • On average, someone age 65 today will need some long-term care services for three years.3
  • Women need care for longer (on average 3.7 years) than do men (on average 2.2 years). 4
  • The average stay & cost in Alabama is:
Nursing Home
2.4 years
$57,590 per year
Home Care
4.3 years
$19,500 per year
 
There are really only 3 ways to pay for long term care: 1) Out-of-Pocket:  You could pay for care from your savings, or rely on your family. 2) Medicaid:  After you exhaust all your savings and qualified assets, the State would provide care at a facility of their choosing. 3) Long Term Care Insurance:  You could pay a little premium now, and rely on your insurance to cover the big expenses later.
 
1. www.longtermcare.gov
2. www.longtermcare.gov
3. www.longtermcare.gov
4. www.longtermcare.gov
 

Selecting a LTC plan...

Plan ahead.  Qualifying for long term care insurance can involve lengthy health questionnaires, medical interviews, and cognitive assessments.  Don't let the process frighten you, but know that a health problem could disqualify you from coverage.  It is important to apply early.

Search for balance.  The options available on LTC policies can be mind-numbing.  Do not get overwhelmed, but seek the advice of a long term care expert and seek to balance your plan options with your budget.  A good long term care representative will be able to find a plan to meet your needs.

Inflation protection is important.  A constant in our economy is that things get more expensive over time.  Work with your representative to get the best inflation protection you can afford.

Decide before your birthday.  Waiting another year could cost you.  Long term care insurance premiums are based on your age at the time of application.  Procrastination could cost you an amazing amount of money over your lifetime.

2008 Collateral Educator Services / 1.866.322.2244 / info@servingeducators.com aeabenefits.com   email