Long Term Care Insurance
What is Long Term Care?
- The 62-year female NJ school employee that took an early retirement to care for her 83 year with Alzheimer's that has moved into her home.
- The 92-year-old female with vascular dementia for 6 years. 5 years 8 months at home with 4 part-time family caregivers and the last 4 month in hospice.
- The 65-year-old male with advanced Parkinson’s now living in an assisted living facility.
- The 55-year-old female with advanced rheumatoid arthritis that impairs mobility.
- The 88-year-old male that spent down his assets to avoid a stay in a nursing home. Currently a resident in a nursing home semi-private room on Medicaid.
There are a lot of emotions when a loved needs care, long term care insurance can help take the emotion of money out of caregiving.
Long Term Care Affects Everyone!
More and more we are hearing of celebrities that have been affected with a long-term illness. No one is immune to chronic illness!
- Glenn Campbell – Diagnosed with Alzheimer’s in 207, passed away in 2017
- Christopher Reeves – Suffered a spinal cord injury. He was a quadriplegic for 12 years
- Annette Funicello – Diagnosed with MS in 1987, she passed away in 2013
- Dick Clark – Suffered 2 strokes since 2004 and he passed away in 2012
- Ronald Reagan – Diagnosed with Alzheimer’s in 1994 – he passed away 10 years later
- Alan Alda – Diagnosed with Parkinson’s Disease in 2015
With the Advances in medical science:
- We are living longer than ever before We are surviving major health events.
- We are surviving major accidents.
The end result equals more and more of us will require help with everyday living activities in the years ahead!
What are the chances of needing Long-Term Care?
What is Long Term Care?
52% of people turning age 65 will need some type of long-term care services in their lifetimes.
While people of all ages need long-term care, the likelihood of needing care grows as people age.
Source: AARP
69 % of all Long Term Care is in the home.
Long Term Care Insurance can fund care in the comfort of your home.
What Does Medicare, Medicaid and Health Insurance Pay?
Medicare: Medicare doesn’t cover long-term care (also called custodial care), if that's the only care you need. Most nursing home care is custodial care. You pay 100% for non-covered services, including most long-term care. Source: Medicare.gov
Medicaid: Medicaid pays for about 50% of all long-term care costs. However, Medicaid is designed for those with little income and assets. Oftentimes, families are expected to “spend-down” their assets in order to qualify.
Health Insurance: Health insurance does not pay for long-term care.
Why do people buy long-term care insurance?
- To protect my assets
- Security/peace of mind
- To cover the cost of LTC services
- I might need it in the future
- I don’t want to be a financial burden to my family
- I know I’ll need it
- I know someone who had trouble paying for LTC services
- I know I’m getting older
- Don’t want my children to have to take care of me
- To make sure
- I’m taken care of in later years
- Loved ones don’t live close enough to take care of me
- I want to be able to choose the type of care I get
Source: Survey by Mutual of Omaha
What are Your choices for paying for long-term care?
- Self-insure or pay out of pocket
- Have your family care or pay Medicaid – exhaust your assets
- Affordable long-term care insurance
