Facts & Information to Help You Make the Right Decision
Questions and Answers About Long-Term Care
Q. I'm really healthy right now...Why would I need Long-Term Care Insurance?
A. Although healthy people don't like to think about getting older, developing a disability, becoming less independent, or needing help with personal care, the fact is a person can need long-term care services at any age.
- Forty (40%0 percent of people currently receiving long-term care are adults 18-64.
- Seventy (70%) of adults who live beyond age 65 will need some type of long-term care services, and the likelihood of needing care increases with age.
You may be in good health today...but if your health changes, even as early as tomorrow, you many not be able to get insurance at any price. And then you could be faced with paying all the bills yourself.
Q. Am I too young to be thinking about long-term care?
A.The need for long-term care can come at any age, no matter what a person's health status. Many people who truly intend to purchase long-term care insurance put it off from year to year. They procrastinate they can wait until they're a little bit older before deciding to buy. But waiting might be costly!
For starters, like most insurance-premiums are based on how old your are when you apply. The older you are when you sign your application--the higher your premiums will always be.
Also, the information you provide on your application is based on your past history up to the time you apply for coverage. should your health change...or should you suffer an accident...you could be come uninsurable.
Q. Right now, I don't want to think about facility care. Is there a way I can stay and collect benefits-even if my spouse, friends or family take care of me?
A. Many people who need long-term care develop the need for care gradually. At first, they may only need care a few times a wee, one or two times a day, for example, to help with bathing and dressing.
- Today, there are policies on the market that pay Monthly Cash Benefits when home care is provided by spouse, friends or family.
- Payments begin on the very first day you're eligible for benefits. There are no bills to submit-no paperwork-no strings attached. The money can be used as you see fit.
Q. Looking toward the future, what if I need certain services that my family and friends cannot provide?
A. Should your care needs progress to where additional financial resources are necessary, there are policies that give you a choice.
- You can either collect Monthly Cash Benefits, or
- You can be reimbursed for actual expenses incurred for Basic or Professional Home Care Services, Assisted Living Facility or Nursing Home Care.
Q. What are the main advantages of having Long-Term Care insurance?
A. A key advantage is freedom to choose where you want to receive care. As mentioned earlier, many people prefer to be cared for in the comfort of their own home. some policies even pay cash benefits when family and friends provide care and no charges are incurred. For optimum protections, be sure to choose a policy that also covers care in a wide variety of facilities and nursing homes.
Long-Term Care insurance is an effective way to help protect your assets and savings against the rising cost of care. Another major advantage of this valuable protection is not having to rely on family and friends for all your care needs.
Q. Just how expensive is Long-Term Care? I want to be sure my retirement is secure.
A. Long-term care services can be very expensive and costs vary widely based on where you live. As a national average, the daily rate for a private room in a nursing home is $209 or $76,285 per year. The monthly rate for a one-bedroom assisted living facility unit is $3,008 or $36,096 per year.
As for home care, the hourly rate for a home health aide is $29 and the hourly rate for homemaker services is $18. Because professional home care services costs much more, many policies offer higher benefits to cover the services of a registered nurse, physical therapist, etc.
If you want to help protect your income and assets, long-term care insurance should ban essential part of your retirement plan. The cost of long-term care services can be staggering and could pose a threat to your financial independence during your retirement years.
Q. What kind of risk would I be taking without Long-Term Care insurance?
A. Many people who begin paying for nursing home care find that their savings are not enough to cover lengthy confinements. The failure to prepare for the cost of a nursing facility stay or other long-term care is often the reason for the loss of financial security among retirees.
Long-term care insurance can help you protect your nest egg - and help ensure your financial security.
Q. Wouldn't Medicare pay for my Long-Term Care needs?
A. May people believe they can rely on Medicare to pay for any long-term care services they will need. The fact is:
- Medicare does not pay for what comprises the majority of long-term care services - non-skilled assistance with Activities of Daily Living.
- Medicare does not pay anything for care in an Assisted Living Facility.
- Medicare only pays for long-term care if you require skilled services or recuperative care for a short period of time.
- In reality, Medicare coverage is limited to skilled nursing care for a maximum of 100 days.
Q. What are the odds of it happening to me?
A. According to a study done by The National Academy of Elder Law Attorneys, your risk of needing long-term care assistance is 1 out of 2 (50%0.
The study compared the risk of needing long-term care with the risk of other financially devastating risks, such as a major auto accident, or a fire in a person's home.
According to that study, the odds are:
- Automobile accident 1 out 240 (0.4%)
- Fire damaging your home 1 out 1,200 (0.08%0
- Needing long term care assistance 1 out of 2 (50%)
Given the one out of two odds of needing long-term care, many people find the risk worth insuring against. Don't let long-term care insurance be the missing link in your financial plan.
Q. What about my family? I'm sure they would be willing to take care of me.
A. Although it's common to ask family for help, especially during the early stages of long-term care, reliance on family can be burdensome as the need for care progresses.
Ongoing care for another person takes a great deal of time, effort and work. Unfortunately, many caregivers must juggle their care giving responsibilities with full time jobs and parenting, often putting their own needs aside.
Long-Term Care insurance can help alleviate care giving responsibilities and its inherent problems, such as a toll on physical or emotional health, diminished productivity at work, job stability etc.
Q. I already have health insurance...Do I really need Long-Term Care Insurance too?
A. There's a big difference between health insurance and long-term care insurance? Health insurance (including Medicare) generally pays the cost of treating illness or injuries, including doctor visits, hospitalization, and lab tests.
Long-term care insurance, on the other hand is designed to cover ongoing care and services required by those who are unable to care for themselves. Long-term care may be needed because of physical limitations or cognitive difficulties.
Q. Can I fit the cost of Long-Term Care Insurance into my budget?
A. It's always easier to budget a set monthly amount than be hit with large and often unexpected expenses. Look at it this way: If you didn't have health insurance and incurred large medical bills, you would have to reach deep into your pockets - maybe tap your savings - to pay the bills. It's a gamble many people are unwilling to take because the takes may be too high.
The same holds true for long-term care. If something happened to you and you needed to be cared for over a long period of time, your retirement savings, perhaps the money you hoped to leave your children, might need to be used to ay the bills. It's a gamble for sure. That's why many people would rather pay a monthly premium than be hit with the high cost of long-term care.
Q. Is it wise for me to shop around before selecting an insurer?
A. Purchasing long-term care insurance can be complicated. That's why your agent makes it a practice to look at the same things you'd want to know when choosing an insurance company.
For example, is the insurer financially stable with a strong commitment to the long-term care market? Are their policies priced correctly? How about their contracts - are they easy to understand?
You can count on LongTermCareInsurancePros and your Long-Term Care Specialist to research the growing number of insurers and the long-term care products they offer. This research saves you the time and hassle you'd have to endure of you shopped for long-term care insurance all by yourself.
Long-Term Care Financing & Planning is What we Do!