Many consider long-term care (LTC) insurance as a necessity only for seniors. While seniors are the primary beneficiaries of long-term care insurance, they are not the exclusive audience. In fact, the American Association for Long-term Care Insurance states that 37 percent of those who need it are younger than 65 years old. Those who need long-term care but who do not have proper insurance often face extremely high costs, which poses the risk of depleting a lifetime of hard-earned savings.
What Is Long Term Care Insurance?
Long-term care insurance is in place for those who need financial assistance for managing disabilities and chronic illnesses. These individuals may require assistance with daily care such as bathing, dressing, and eating. Additionally, long-term care insurance assists those with cognitive disorders including Alzheimer’s disease and other types of dementia. The care provided through long-term care insurance may be provided in-home, as well as in a living facility such as a nursing home or an assisted living community.
Long-term care insurance covers costs for services and treatments such as:
- Nurses and home health aides that provide in-home visits to patients
- In-home assistance with daily personal and hygiene tasks, such as meal preparation and bathing
- Community services, such as adult day care programs
- Costs associated with being admitted into a nursing home or assisted living facility
Long Term Costs
The costs of long-term care vary from state to state. Research shows that in 2013, the national average for a semi-private room located within a skilled care facility was roughly $91,000 each year, or $250 each day. The lower estimate of this yearly cost was $54,000 for Louisiana skilled care patients, and the higher estimate was roughly $170,000 for those in metropolitan New York.
Long Term Care Insurance Misconceptions
There are a number of misconceptions that surround long-term care insurance. For example, many individuals believe that Medicare covers the costs of long-term care services. However, this is not true. Medicaid covers some of these costs for low-income individuals. Additionally, a number of states have cut costs contributed to long-term care coverage for Medicaid patients, making proper coverage an uncertainty.
Middle Income Needs LTC Most
Wealthy individuals may have sufficient finances to cover costs, and low-income individuals may receive Medicaid coverage. But where does this leave middle-income individuals, who comprise the majority of the population? Experts suggest that these individuals are the ones who most need long-term care insurance. These individuals typically have too much income and savings to qualify for Medicaid, but too little income and savings to be able to cover the full costs of long-term care.
Contact us today to discuss your need for long-term care insurance and how we can help.