Long Term Care Insurance

Planning today for care tomorrow.

Why Long-Term Care Planning Matters

For most of us, it is unpleasant to envision a time when performing routine tasks may become difficult as the result of injury, illness or aging.

If the time comes when you need substantial assistance performing daily tasks, it is unlikely you will want cost to be the primary decision-making factor for your long-term care.

Long-term care services can be expensive and costs generally continue to rise. Planning early can help ensure that you have more control in receiving the type of care you want — in the setting you choose, should the need arise.

What Is Long-Term Care?

Long-term care includes a variety of services and supports designed to help meet personal care needs over an extended period of time.

These services may include assistance with Activities of Daily Living (ADLs), such as:

• Bathing
• Continence
• Using the toilet
• Transferring to and from a bed or chair
• Dressing
• Eating

Long-term care services are generally not covered under personal health insurance or Medicare because they are not intended to cure, improve or treat a specific medical condition.

Medicaid may help individuals with income and assets below state requirements.¹

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Understanding the Costs

Whether long-term care services occur in a nursing home, assisted living facility, or your own home, the costs can be significant.

The average stay in a nursing home is 835 days (approximately 2.3 years) and costs approximately $183,700.²

The national median hourly rate for a home health aide is $20, and those costs can accumulate quickly over time.³

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Potential Ways to Pay for Care

A variety of resources may be available when expenses do not qualify under Medicare or personal health insurance.

• Family and Friends

  In some situations, family members and friends may assist with meal preparation, transportation, household tasks, medication management, and other care needs.

  While caregiving can be rewarding, it can also become physically and emotionally demanding over time.

• Personal Assets and Income

  Many individuals use savings, investments, pensions, Social Security benefits, annuities, home equity, or other personal resources to help pay for care.

  Consider how long these resources may last and how using them for long-term care could affect other financial goals.

• Long-Term Care Insurance and Related Solutions

  Insurance specifically designed for long-term care expenses may help offset future costs.

  Certain life insurance policies and annuities may also contain provisions that allow benefits to be used early if long-term care is needed.

  It is important to have an insurance professional review existing policies and explain available options.

• Medicaid

  You may be eligible for your state's Medicaid program if you meet certain income and asset requirements.¹

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Making It Work

As you can see, there are many alternatives to consider when preparing for the possibility that you may need long-term care.

Generally, beginning early has advantages. At younger ages, you are more likely to be healthy and qualify for various types of insurance coverage.

Starting early may also allow you to meet long-term goals with lower installment savings amounts or annual premiums.

You don't have to prepare for long-term care expenses alone. Our Financial Professionals can review a variety of solutions that may help you meet your goals.

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Additional Information

¹ For more information regarding benefits provided by Medicare or Medicaid, visit www.cms.hhs.gov. Medicaid guidelines vary by state. Contact your local Medicaid office for details.

² National Nursing Home Survey 2014, National Center for Health Statistics.

³ Cost of Care Survey, Genworth, June 2015.

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