Long Term Care Insurance

Long term care insurance covers expenses and services not covered by health insurance, Medicare, or Medicaid. Speak with one of our specialists about your options today.

What is Long-Term Care Insurance​

Long-term care insurance is a policy that helps individuals cover care expenses when they have a chronic medical condition, disability, or disorder. Long-term care assists with daily activities and can be used within an individual’s home, a nursing home, or an assisted living facility.

An LTC policy outlines events that trigger qualification for benefits. Examples include:
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  • The inability to perform any two of six basic self-care routines called Activities of Daily Living, or ADLs. These six routines are eating, bathing, dressing, toileting, continence, and transferring from one surface to another. Needs of this nature are considered custodial care.
  • A cognitive impairment to memory or reasoning that results in the inability to interact safely with your environment. The average need for Long Term Care is typically 2.8 years but, it can last far longer if it is needed for a more chronic condition such as dementia, a severe accident, or a stroke.

Do I need this coverage?

70% of people 65 and over will need some form of long-term care in their lifetime.

Many think Medicare is the solution…this is a very dangerous myth… Medicare will only cover a nursing home stay for up to 100 days but there are strict guidelines to follow. The care provided must be skilled care and it has to be in a Medicare-certified facility and only after a hospital stay of at least 72 hours.

Care must be designed to get the patient better. Medicare pays the first 20 days in a certified facility at 100%. Over the next 80 days, the patient is responsible for a daily ($185.50 co-pay) and Medicare pays the rest. Skilled care beyond 100 days is not covered by Medicare.

Then there is Medicaid… Medicaid pays the largest share of LTC services across our country. To qualify for Medicaid, however, your income must be below a certain level (which is set quite low). You also need to meet minimum eligibility requirements in your state. When this happens you lose control of how you will be cared for and where you will be.

The Cost of Long-term Care

As the need for care increases, so does the cost of care. Genworth Financial has tracked care costs for 17 years. In 2020, it reports national monthly median costs as the following:
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  • In-home care: homemaker services ($4,481) and home health aide ($4,576).
  • Community and assisted living: adult day health care ($1,603) and assisted living facility ($4,300).
  • Nursing home facility: Semi-private room ($7,756) and private room ($8,821).

​The cost of that care varies based on the care setting, geographic location, and level of care required, among other things. The cost of LTC care today is expected to nearly double over the next 20 years.

Benefits of LTC Insurance

You may be thinking of LTC insurance as yet another thing that you have to pay for each month. Before jumping to conclusions about costs, let’s examine the benefits of having long-term care coverage should you need it.

LTC will help protect your retirement savings

If you suddenly need long-term care and have no plan in place, it can eat up your savings quickly. Over 50% of all couples where a spouse needs care will become impoverished in less than 12 months. LTC insurance will help protect your hard-earned retirement savings.
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LTC gives you more options
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If you don’t have LTC insurance or enough private funding to afford long-term care, you will likely have to rely on government aid if you qualify. This can limit the available options for long-term care locations, which may lead to being in a facility that isn’t your first choice. LTC insurance offers you more choices for where you want and how you receive care.

Alternative Coverages to Consider

  • Another alternative vs. regular Long Term Care  coverage include Hybrid Long Term Care plans and Annuities.
  • Hybrid long-term care insurance combines life insurance with long-term care benefits. These plans are becoming very popular due to no matter what premium dollars will never be wasted. These plans can be paid monthly, single premium, or paid-up in as little as 5 years.
  • LTC annuities offer an insured an opportunity to put a lump sum amount into a plan that will have a pool of money for their Long Term Care. LTC annuities are excellent for people who have funds sitting in money market accounts, CDs, or regular checking accounts. The average one-time single premium cost for this type of policy is $75,000. Home equity and reverse mortgages may also help pay for long-term care costs.

​For more information about what your Long Term Care Planning options will be, please feel free to contact our office and we will help answer all of your questions.
(864) 868-5194
Six Mile, SC 29682
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