Long-term care (LTC) insurance covers costs for services like nursing home care, home health care, and assisted living facilities, usually not covered by regular health insurance. It’s important to note that 70% of long-term care claimants receive care at home, while 13% are in assisted living and 13% are in nursing homes.
LTC insurance has several benefits, including protecting assets by covering expensive long-term care services, avoiding reliance on family members for care, maintaining independence, and preparing for the future. It can provide peace of mind and help individuals plan ahead. It’s crucial to carefully assess the costs and benefits of long-term care insurance and consult with a financial advisor before deciding.
RELATED ARTICLE: Long-Term Care: The Catastrophic Financial, Emotional, and Mental Cost
Types of Long-Term Care Insurance Products
There are several different types of LTC insurance solutions available, each with its own features and benefits. Some of the most common types of LTC insurance include:
- Traditional long-term care insurance. This type of insurance provides coverage for long-term care services, such as assistance with daily living activities, nursing home care, and home healthcare Benefits are paid out as a daily or monthly benefit amount for a specified period, usually up to five years. Carriers: Mutual of Omaha
- Life insurance with a long-term care rider. This type of insurance allows policyholders to access the death benefit of their life insurance policy if they need long-term care. If the policyholder does not use the long-term care benefits, the death benefit will be paid to their beneficiaries. Carriers: OneAmerica, Nationwide
- Annuities with long-term care benefits. This type of insurance allows policyholders to receive a guaranteed income stream in exchange for a lump sum payment. Some annuities also include long-term care benefits, which can help cover the cost of long-term care services. Carriers: OneAmerica, Nationwide
- Short-term care insurance. This type of insurance provides coverage for a shorter period, typically up to one year, and is designed to cover temporary care needs. Short-term care insurance may cover services such as rehabilitation, home healthcare, and assisted living. Carriers: Manhattan, Aetna
- Prepaid home healthcare. This is a non-insurance product where individuals or their families pay in advance for a specified amount of home healthcare services. These services are typically provided by licensed healthcare professionals in the individual’s home. This may include assistance with activities of daily living, medication management, wound care, and other medical or non-medical services. Carrier: True Freedom
LTC insurance is essential to protect against the significant financial costs and potential emotional toll of needing long-term care. With the high costs of caregiving services, medical expenses, home modifications, transportation, lost income for caregivers, and the mental and emotional challenges faced by caregivers, having good long-term care insurance can provide the necessary financial resources and peace of mind to ensure that one’s long-term care needs are met without depleting personal savings or burdening loved ones.
When considering LTC insurance solutions, it’s important to evaluate each option carefully and consider cost, coverage, and the level of flexibility and customization available. Schedule a phone call with me today to discuss your long-term care coverage options.
Additional Resources
A Shopper’s Guide to Long-Term Care Insurance
Concourse Financial Group: Preparing for Long-Term Care & Chronic Illness Expenses
10 Reasons Why Long-Term Care Insurance Is Essential To Your Financial Plan
Long-Term Care Insurance Explained
