Long-term care involves a variety of support and services designed to help you live as independently and safely as possible when you can no longer perform everyday activities on your own.
And putting a plan in place now — as you would for any other future financial need — can help you choose the type of care that is familiar and comfortable for you, whatever your needs might be.
Chances are, you’ll need long-term care (LTC) at some point in your life. Planning now can help you maintain your choices in the future.
We all enjoy being in a familiar environment — like our home and the community we live in — with the people we know and love. So, it should come as no surprise that when faced with the prospect of long-term care (LTC), 74% of individuals want to receive care in their homes.
Costs are expected to more than double in approximately 20 years.
Putting a plan in place now to address these expenses can give you the freedom to select the services and providers you want later on. And, it may even extend the length of time you’re able to remain in your home.
There are many misconceptions surrounding how long-term care expenses can be covered. So, the first step in creating a plan is to know what your funding options really are:
DOES NOT cover long-term care expenses
May cover a portion of long-term care costs, but only up to 100 days; requires a three-consecutive-day stay in hospital under treatment, as well as other qualifiers
Covers long-term care expenses for individuals with countable assets of $2,000 or less (varies by state); care may be limited to a nursing home
Many may assume their adult children will care for them later in life, but this can present huge financial, physical and emotional challenges for the children
Using income and savings or selling assets may be an option; however, it may leave a surviving spouse without adequate financial resources, or reduce a legacy planned for heirs
LTC coverage can be a cost-efficient way to help protect yourself and your assets from the potentially devastating4 cost of long-term care
• You wish to enhance or protect the legacy to your heirs
• You need insurance for family protection now, but would like a source of funds to help cover potential long-term care expenses later
• You’re not looking for life insurance coverage
• You desire LTC coverage at a lower cost or would like more policy customization
Note: premiums may increase numerous times in the future, and there may be no policy benefits other than LTC coverage.
• You are primarily concerned with LTC coverage
• Have less need for life insurance coverage
• They offer an extension of LTC benefits beyond the life insurance coverage
• Premiums are guaranteed never to increase
• Typically funded with a single premium or premium scheduled of 10 years or less
If you decide that long-term care coverage is right for you, there are two common types of benefit plans available to choose from:
• Bills must be submitted every month
• Each month, wait to see what services are covered; insurance company sends a check for only what’s covered
• Services not covered under your policy will need to be paid for out of pocket
• Elect to receive up to 100% of your available monthly cash benefit
• Use your monthly cash benefit without restrictions, no need to submit monthly bills or receipts once your claim is approved
• Unused monthly benefits can be used for other expenses as you see fit, including saving for future expenses