By: Cindy Najera on June 12th, 2017

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What Is Long Term Care Insurance?


Like most of us, you probably hope or expect your children will take care of you when you are no longer self-sufficient.  Unfortunately, most children will NOT take care of their parents.  Eye opener, right?

In this article, I will guide you through the who, what, when, where, why, and how of long term care insurance to help ensure you are taken care of when you need it the most.

What is it?

Long term care insurance is designed to provide assistance when you are not able to do some of the basic activities of daily living.  These activities include (but are not limited to) bathing, dressing, eating, toileting, and getting in and out of bed/seat.  Long term care can be provided in your home, through assisted living, or in a nursing home.

Who needs it?

We all do.  According to the Department of Health and Human Services, 70% of individuals turning 65 years old will need some type of long term care.  And since we are living longer lives, the chance we will need long term care increases dramatically.

Where can you get Long Term Care Insurance?

Long Term Care insurance is offered by many insurance companies.  However, I highly recommend that you speak with an insurance broker, advisor, or financial professional that you trust, to ensure they help you determine the plan design that will work best for you.

When should you get it?

Now!  You are younger now then you will be, and in your best health, so start planning today when you have the most options available to you.  Changes in age and health will occur and this can make it almost impossible for you to obtain coverage.  The rates you will receive now, are lower than they will be in 15 or even 30 years from now.  Based on Genworth’s 2016 Cost of Care Study, the annual cost of nursing home care will more than double in the next 30 years.

Nursing Home Annual Long Term Care Cost

Today (2016)

15 Years from Now (2031) 30 Years from Now (2046)
$80, 574 $125, 532

$195, 574

Why should you get it?

Give yourself and your family the greatest benefit of long term care insurance; the gift of self-sufficiency.  Having a long term care plan is so important and can help reduce the burden and emotional strain when the need arises.  Your loved ones will be able to care ABOUT you and know that you will be taken care of when you need it the most.  Long term care can cost as much as $250 per day, and to most, it is a shock to find out that Medicare doesn’t cover the cost at 100%.  In fact, Medicare only covers care for required skilled services or rehabilitative care (for a max of 100 days).  Purchasing long term care insurance is a way for you to be financially secure when you need the additional assistance.

How do you get it?

Contact a broker, advisor, or financial professional that you trust to help you through the planning and section process. Should you need an introduction, feel free to contact us and we'd be happy to give you a referral!