Top Questions And Answers about Long Term Care
- What is Long Term Care?
- Why is there a need for Long Term Care?
- What Do Long Term Care Services Cost?
- Who Pays for Long Term Care expenses?
- What is Long Term Care Health Insurance?
- What should you look for in an LTC policy?
Long Term Care is any services that a person with a debilitating condition like Alzheimer’s or Parkinson’s might need. Any Activity of Daily Life (ADL) that a person cannot do themselves, such as getting out of bed, using the bathroom, and taking food and medicine that needs to be done with help from another person is what Long Term Care encompasses. Not just custodial services, LTC includes doctor’s visits and checkups, as well as medication and treatment.
Why is there a need for Long Term Care?
With advances in medicine, as well as better eating and exercising habits, people are living longer every year. By 2050 the population of people over 65 is expected to double, and the group of those that especially need care (people over 80) are rapidly growing as well. Longevity may seem like a good thing, but the older people get the more likely they are to fall victim to many conditions which years ago were significantly rarer. Coupled with the changed dynamic of the household, in which now women usually work and cannot care for an aged parent all day, the situation demands that a service be in place that can give attention to you or your loved ones in their old age.
What Do Long Term Care Services Cost?
One year in a nursing home can be as much as $40,000, with some facilities costing more than $100,000 a year. Because it is becoming increasingly important to find a way to care for loved ones, the demand for a place in a nursing home is high and prices rise accordingly. Home care is also expensive, with a daily visit of one hour nearing $1800 a month and an eight hour visit reaching as much as $7200 a month.
Who Pays for Long Term Care expenses?
There are three ways in which Long Term Care can be paid for. Cash is the most obvious, which is a drain on your finances if you have it and impossible if you don’t. Welfare and Medicare may provide you with enough money for Long Term Care, but the facilities you’ll be able to afford might not be up to your standards. The third option is Long Term Care Health Insurance.
What is Long Term Care Health Insurance?
Long Term Care Health Insurance, developed during the early days of Medicare to supplement the government program now provides coverage for a wide array of Long Term Care needs. Like any insurance service, a customer pays premiums on a policy until that time when they have an insurance claim that their policy entitles them to benefits. These benefits can include the payment of adult day care, nursing homes, assisted living facilities, and home visits.
What are the important factors in an LTC policy?
The financial strength of a policy is important; you’ll want to make sure that your policy lasts long enough to give you or your loved one adequate care. The daily benefit of your policy is also key. The cost of care can vary from place to place and facility to facility, and you want to make sure that your coverage gives you enough money per day. A nursing home can cost as much as $130 a day and nearly $200 in metropolitan areas. Consider too the threat from inflation. With a 5% increase annually, in 14 years the price of Long Term Care can double. Ask your insurance carrier about protection from inflation before you purchase any policy. Another point of interest you may want to inquire about with your carrier is their claim payment process. Make sure you understand what is needed of you when it comes time to receive payment of your policy, and find out how many claims are actually paid. Finally, premiums may grow as time goes on. While insurance companies cannot raise the rats of an individual, they can take an entire class of policies and change the premium amount. Make sure you know your company’s protocol regarding this before you purchase a policy.
How can I find out more information?
When you request your free no obligation long term care quote you will receive the Free Insider’s Guide to Long Term Care . Giving you the chance to learn even more about your options and speak with a licensed local insurance professional in your area...Take me There.