A concern that affects almost every home, long-term care will be required at some time in the lives of nearly 70% of adults turning 65 today. And even though a large number of individuals will need long-term care, not everyone uses long-term care insurance to cover the costs. However, long-term care comes at a high cost, and many people are unable to pay the full amount out of pocket. Extended daily care is not typically covered by traditional employer-based health insurance, and in general, health insurance only covers doctor and hospital expenses. Long-term care insurance may help to offset some of the costs of long-term care (LTCI).
1. A variety of settings are covered by long-term care insurance
Most people picture nursing homes when they think of long-term care. However, 73% of those who need long-term care do so at home rather than in nursing homes or assisted living facilities. 2 When a person is unable to perform daily tasks like dressing, eating, bathing, or moving, they require long-term care, which is frequently offered in the patient’s own home by a home health aide. Even while it’s not always nice to consider situations in which long-term care will be required, LTCI can assist in covering the costs. It might provide a means for you to get care at home rather than in a nursing home or assisted living facility.
2. The gaps in caregiving can be filled with long-term care insurance
If long-term care becomes essential, it is impossible to say with certainty if your family would be able to take care of you. It can be extremely expensive and emotionally taxing to provide care. Furthermore, 66% of caregivers wind up utilizing their own retirement. Savings money to pay for care due to the high expense of long-term care. 3 Additionally, the practicality of caregiving might not be possible. If your family members live far away or are unable to balance it with their own work or family commitments.
3. Medicare does not cover as many medical expenses as long-term care insurance
Long-term care is typically not covered by Medicare Supplements, and it only occasionally pays for the care given at home. When you are recovering from a hospital stay for a related ailment, Medicare Supplements in Wilmington does pay for skilled care in a nursing home for brief durations (up to 100 days), but it is not the same as long-term care. Medicare won’t cover those expenses once your care needs have stabilized and you require personal or custodial care.
4. You’ll probably require some kind of long-term care
70% of 65-year-olds today will require long-term care services at some point in their lives. 1 It’s challenging to predict whether or not you’ll require long-term care because it may be necessary for a variety of different reasons. Instead of waiting until you’re sick or older, when it might become unaffordable, to buy an LTCI coverage. It’s preferable to do so when you’re still in good health, which is typically in your 50s. Your premiums will be lower the younger you are.
5. Your long-term care demands could not be covered by your funds
Long-term care comes in many forms, from assistance with daily tasks . Activities to total care in a private nursing home room. The average annual cost for a semi-private room in a nursing home is $94,900. The average annual cost for an assisted living facility is $54,000. 4
Your retirement assets might not be sufficient to pay these fees given the rising price of long-term care.
6. Long-term care insurance has a range of prices.
Your age and the amount of coverage the policy will provide in the event you need it will both affect pricing. For example, according to the American Association for Long-Term Care Insurance, a couple that chooses an initial insurance benefit of $165,000 and is both 55 years old will pay a joint yearly premium of $2,080. The cost would increase to $3,750 a year for a couple who are both 65 years old. 2
7. Long-term care insurance coverage comes in a variety of forms.
Traditional LTCI policies typically pay a set sum for each service, such as $100 per day for nursing home care. Usually, the benefits you are eligible for are subject to a cap, either in terms of years or money. A pooled benefit plan will establish a total cash value for the numerous services you receive. If it includes more than one form of long-term care.