November is National Long-Term Care Insurance Awareness Month!
Aging baby boomers and new medical technology that prolongs life have increased the need for Long-Term Care. Long-Term Care is something Americans should be thinking about at an early age.
Long-Term Care refers to a wide range of medical and non-medical services – including custodial help with daily activities, nursing care and skilled nursing services – for people who are physically or mentally unable to care for themselves. Home health care, adult day care, respite care, assisted living and nursing home care all fall into the category of Long-Term Care.
Long-Term Care Insurance Critical for Any Age
A Long-Term Care insurance policy can help cover the expenses incurred for long-term care. Many people mistakenly assume that long-term care insurance is only for the elderly, but a third of all individual long-term care policies are purchased by people younger than 65. The coverage is critical for a person of any age; plus, it can be more economical to purchase such coverage when younger and also easier to get approval for when you are healthy.
Anything can happen to anyone at any time resulting in the need for some sort of care. It is not uncommon to find a person in their 30s in a nursing home because of a debilitating accident or illness.
Other Coverages Inadequate
Other types of insurance or government programs don’t provide the amount of coverage available in a long-term care policy.
· Health insurance policies typically do not cover long-term care costs such as nursing homes or assisted living facilities. Also, most policies don’t pay for adaptive equipment, special transportation needs or home modifications.
· Many Americans assume that Medicare will cover these costs. However, coverage is limited and will still require large out-of-pocket expenses. Also, Medicare pays for skilled nursing facility care (with limits) only after a discharge from a three-day hospitalization. It does not pay for custodial or intermediate care, and the majority of care provided in nursing homes is custodial, which includes assistance with activities of daily living, dressing, eating and moving around.
· After an individual has exhausted all of their assets, they may qualify for coverage under Medicaid. However, with Medicaid an individual and their family members lose choice over the care received and where they must reside and recieve the care.
A Long-Term Care Insurance policy can save you from having to deplete your assets for care and can prevent you from being at the mercy of the state. It will protect your assets, relieve your family and children from the burden of caring for you and it will give you Choice of where and how you recieve your care. In some sense it’s lifestyle preservation to ensure you have a say in your care. At the same time, it’s asset preservation – it allows you to pass something to your heirs.
It Pays to Shop Around
Here are some things to look for when shopping for a long-term care policy:
1. Purchase a policy from a company that is financially strong. Be sure they will be there when you have a claim.
2. Select an Agent or Broker who is experienced with long-term care and with whom you feel comfortable.
3. Consider purchasing compound inflation protection because the cost of care is expected to increase considerably over the next 10-20 years.
4. Weigh the difference between a lifetime policy and a limited benefit policy. In many cases, the premium difference between a three year, five-year and a lifetime policy is minor.
If you have questions about Long Term Care Insurance & Planning, feel free to contact me:
Milan (Mike) Kresovic
Mutual of Omaha:
1-888-467-6374 or Email me at milan.kresovic@mutualofomaha.com
