Long-term care insurance is a type of insurance that covers the costs related to long-term, chronic health concerns. It may cover things that traditional health insurance does not cover, such as personal care services. If you have a long-term care policy, the insurance carrier may provide an amount based on your expenses to cover things such as nursing home costs or the expenses for a home health aide.
While long-term health insurance is not a new option, it is becoming more prevalent as the costs of aging continue to rise. Here are five things you may need to know about long-term care coverage.
It Is Designed To Cover Financial Gaps
Caregiving is expensive, especially when 24-hour care is required. The cost may lead to a huge financial burden on family members. Many of the services covered under these policies are not covered under health insurance, so these policies may provide extra funds to alleviate the financial stress.
There Is a Good Chance You May Need Long-Term Care
Once you hit the age of 65, you have more than a 70% chance of needing long-term care of some kind. This need could be due to aging, illness, or the result of an injury.
It May Work In Multiple Long-Term Care Settings
While long-term care has been traditionally reserved for nursing homes, aging in place is becoming more common. 76% of people choose to receive long-term care services in the home versus a nursing home or rehabilitation center setting. Long-term care coverage may provide funds whether the setting is your home, a nursing home or assisted living.
Most Long-Term Care Costs Are Not Covered by Medicare
Long-term care coverage through a Medicare policy is rare and usually only provides coverage under a very specific set of circumstances. Under most Medicare policies, nursing home and skilled care are only covered for up to 100 days after an illness or injury.
Securing Your Policy Early May Save You Money
As with most insurance policies for life or health, the younger you are, the better the price you might pay. Waiting to start your policy until the age of 60 might cost you more per year than it would if you were 55.
Start planning for the future by considering whether or not long-term care insurance is something you want to consider.
Important Disclosures:
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
This material contains only general descriptions and is not a solicitation to sell any insurance product or security, nor is it intended as any financial or tax advice. For information about specific insurance needs or situations, contact your insurance agent. This article is intended to assist in educating you about insurance generally and not to provide personal service. They may not take into account your personal characteristics such as budget, assets, risk tolerance, family situation or activities which may affect the type of insurance that would be right for you. In addition, state insurance laws and insurance underwriting rules may affect available coverage and its costs. Guarantees are based on the claims paying ability of the issuing company. If you need more information or would like personal advice you should consult an insurance professional. You may also visit your state’s insurance department for more information.
All information is believed to be from reliable sources; however LPL Financial makes no representation as to its completeness or accuracy.
Sources:
What You Need to Know About Long-Term Care Insurance, US News and World Report, https://money.usnews.com/money/personal-finance/family-finance/articles/what-you-need-to-know-about-long-term-care-insurance
7 things to know about long-term care insurance, US Bank, https://www.usbank.com/financialiq/plan-your-future/health-and-wellness/costs-and-benefits-of-long-term-care-insurance.html
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