What is Long-Term Care Insurance?

Long-Term Care Insurance is designed to help pay for long-term medical and non-medical services.

It helps individuals who have a physical illness, disability or cognitive impairment that affects their ability to do basic activities of daily living. For example, a policy can help cover any or all of the following type of services:

  • Nursing home coverage
  • Assisted living facility coverage
  • Adult day care center coverage
  • Personal care coverage

70% of people age 65 and older will need some form of Long-Term Care in the next few years.

“The median cost for a home-health aide for an eight-hour day is more than $49,000 a year, while nursing care in a facility with a private room has a median cost of almost $98,000 a year.1 As life expectancies increase, so does the duration of long-term care needs, and the financial burden may end up falling on your loved ones after you’ve run through your own life savings.”2

We are an aging population. Roughly 10,000 people will turn 65 today and 10,000 more will everyday for the next decade.

There have been many advances in medicine and technology. As a result, people will live longer than any generation before them. Therefore, in the not-to-distant future, more people will be in need of Long-Term Care Insurance than any other time in history.

There are several ways to protect yourself and your assets in the event you need Long-Term Care.

  • Traditional Long-Term Care policy works like many other forms of insurance. You pay an annual premium that will vary depending on the your health, length of benefits, and daily benefit amount.             
  • Hybrid Life Insurance Policies and Long-Term Care Annuities are growing in popularity. Many policyholders do not like “use it or lose it” aspect of the Traditional Policies.
  • Life Insurance / Long-Term Care Policy will pay for long-term care if you need it in your lifetime or pay a death benefit to your beneficiaries.
  • Long-Term Care Annuity offers a variety of investments from Fixed, Indexed, or Variable Annuities.  The investments grow tax-deferred and if used for Long-Term Care, the gains are tax-free.

As Long-Term Care grows in popularity, there are new types of policies coming into the market.  If you would like to see what type of policy works for you and your family, please feel free to contact our office with any questions or email us at ltc@gnadeinsurance.com, you can also visit http://longtermcare.gov/.

There is no one-size-fits-all approach to Long-Term Care. Above all, the important thing is to have the conversation with your family.

Get a Long-Term Care Insurance guide from Life Happens HERE.

1Genworth 2017 Cost of Care Survey, conducted by CareScout
2Life Happens, https://lifehappens.org/insurance-overview/long-term-care-insurance/

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