What is Long Term Care Insurance?

Long term care insurance is the type of insurance that will pay for care a person receives when they need help either at home or in a facility with their activities of daily living (eating, bathing, dressing, toileting, transferring, and maintaining continence) due to an accident such as a fall, illness such as Alzheimer's, or just plain old age. The major long term care insurance companies are Genworth Financial, John Hancock, MetLife, Prudential, Allianz, Mass Mutual, New York Life, and Penn Treaty Network America. Long term care is not limited to the elderly. For example, look at Christopher Reeves or Michael J. Fox; both had unfortunate accidents or illnesses at young ages. Accidents and unexpected illness can happen at any time, and fate does not take one's age into account. Many people underestimate the risk of needing long term care at an earlier age. Financial advisers commonly advise their younger clients to consider long term care insurance. The upshot is that younger applicants get significantly lower premiums. How much does Long Term Care cost?National nursing home care costs average between $40,000 and $100,000 per year, depending upon location and level of care. Home health care costs will vary depending on the type and amount of care required. For most of people, this expense would apply a severe strain on their financial security and independence. Who pays for the Long Term Care bills? You do because... Many people mistakenly believe that their health insurance or Medicare will pay for long term care. Currently, private health insurance and Medicare do not cover the majority of long term care costs so a long term care insurance policy might be an option for your financial plan. Health insurance is designed to pay expenses for medical costs such as Doctor Visits, tests, medicines, surgery, or other specific services. Health Insurance will not pay the extra cost of long term care. Government programs such as Medicare, at present, are restricted or limited to only 20 days nursing home care. Medicare, for instance, is designed to provide health insurance for people over age 65 and pays only 4% of long term care costs annually. Medicaid, which is the welfare program, pays approximately 45% of the total spent on long term care, most individuals will deplete their assets to poverty level and then qualify for long term care services. Individuals or their families typically carry the burden of long term care expenses. In fact, consumers or pay 41% of the nation’s long term care costs. How do I apply for Long Term Care Insurance?Long term care insurance is offered in a different fashion than group health and other insurance products. Retirees deal directly with an insurer through a broker or insurance agent. The brokers (such as LTCtree.com) will work for multiple carriers and will be more objective than an agent who works for just one company. Long Term Care Insurance will provide potential protection to all retirees, spouses, and eligible dependents; however, some individuals may be denied coverage because of poor health. Rates will vary with your age so apply while you are young and healthy. Long Term Care Insurance cannot prevent you from ever needing long term care services, but it can help you protect yourself and your family from the financial burden or depleting your assets. For a more in-depth look into your long term care research we have our Long Term Care School 101 class to help guild you through the maze.

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