Who Needs Long-Term Care Insurance?
The short answer to this question is
everyone. As the years pass, the probability that you will need help in caring
for yourself increases. No matter how fit and active you are right now, injury
and sickness are conditions that you can never predict. According to a study done
by the U.S. Department of Health & Human Services, about 50% of those over
65 years of age will develop a medical condition that will require some form of
long-term care. In many cases, the duration
of care will be under 2 years, but in some instances, it could be in excess of
5 years. Whatever be the duration, the cost of the medical care needs to be
handled. The high cost of medical care is a concern for everyone and this cost
is bound to rise with time.
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Health Insurance Is Not Enough
Regular health insurance policies do not
cover long term care costs. Medicare is also of no help as it is only for short
term nursing care and for when limited duration home health care is required. Neither
will it cover the cost of what is known as “custodial care” which is when a
person needs supervision and support for daily activities. This includes Alzheimer’s
disease, dementia, progressive physical degeneration and other such chronic conditions. Medicaid, federal and state
health insurance will provide some help to those defined as having low income,
but this will kick in only after the individual’s financial resources have been
exhausted.
What Long
Term Care Coverage Provides for
Long term care costs can deplete your
savings in a very short time. According to a 2018 study, the average cost of long-term
nursing home care in a semi-private room is almost $90,000 per year. This could
easily go up, depending on the amount of care, medication, rehabilitation, etc. that may be required. Even in cases where
nursing home care is not required, care in the form of a home health aide will,
on an average, exceed $50,000 a year.
Besides protecting your savings, the other
factor to consider is the quality of care that you will receive. The more
coverage you have, the more you can spend on care and this gives you increased
choices in where you are cared for, by whom and to what extent and the quality
of care as well. If you have only
Medicaid or state or federal assistance to fall back on, you will be limited to
facilities that accept payment from
government programs.
Thinking of a time when you will need
medical care for an extended period is not pleasant, but it is a subject that
cannot be ignored. As the study mentioned above predicts, there is a 50% chance
that you will need long term care in the future. Planning now for the coverage
will enable you to budget the costs more conveniently and will give you the
peace of mind that comes from knowing that even if you need long term care, you
will not be a financial burden on others. Talk to an insurance broker to learn more about
the coverage options, costs, how it works and any tax
advantages that may be available so that you can find the coverage that works
best for you.
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