Many people do not think about long-term care options until they are faced with caring for a loved one, or when they are at a point where they need long-term care themselves. It is critical to think about long-term care solutions, and plan ahead for these situations before they impact your life and your finances. Waiting to learn more about the long-term care options available, can lead to insufficient information, and a lack of resources to pay for needed services.
Statics show that there is a good chance you, or someone you love, will need long-term care beyond the age of 65. Approximately 70% of adults over the age of 65 require some services, and the likelihood of needing care only continues to increase with age. Additionally, people tend to underestimate the costs of the care they may need by at least 50%.
Long Term Care Insurance (LTC) is a type of insurance specifically designed for individuals heading toward their retirement years and later stages of life. LTC Insurance will help cover payments to nursing homes, or for skilled care providers who may visit your home. This means if you, or a loved one covered by a LTC policy, develop a chronic illness or disability your LTC Insurance plan can step in cover the cost of help where needed. This can range from assistance with daily activities such as bathing, dressing and eating to more skilled care that takes place in or out of your home.
Many people choose not to enroll in LTC insurance under the misconception that their employer-based health coverage will pay for extended care services. However, this is not the case. In addition, services like Medicare only cover short stays in nursing homes or a limited amount of in-home care. In cases like this, you will have to meet very strict conditions prior to receiving financial assistance. A LTC policy can help cover these additional expenses.
Your Age and Current Health: Remember that policies tend to cost less when they are purchased when you are younger and in good health. As you age, and your health declines, you may be unable to apply for coverage.
Premium Increases: Premiums tend to increase over time, and as you age, you may work less resulting in a less income over time. It’s important to think about how you will pay the premiums for your policy now, and in the future.
Your Taxes: It’s important to note that benefits paid through long-term care policies are not considered taxable income.
To learn more about LTC insurance, or get a quote, connect with one of our experienced agents today who can help you select the plan and policy that is right for your individual needs now and in the future.