Long Term Care Insurance

Simply stated…It’s a great big chunk of money for your family to use when a loved one needs custodial care.

70% of people over the age of 65 and 40% of people under the age of 60 will need care.

NO. Health insurance does not pay for custodial care nor does Medicare. Only Medicaid, a government program for impoverished people, pays for long term care once all assets are spent down and income is extremely limited. Mostly Medicare pays for nursing home care, the place no one wants to be.

NOW–Whether 35 or 65, we know what our health is today. None of us can predict tomorrow.

Purchasing a policy at a younger age not only protects our health but the total cost will be far less than buying a policy at an older age.

It depends.

Traditional policies give us the most benefit for the premiums. A linked policy guarantees those premium payments and provides something for the heirs if long term care is never needed. Other variables such as a cash benefit, inflation and lifetime benefits are important considerations. It is crucial to consult a specialist well-versed in the many options for both traditional and linked long term care policies.

A claim is paid when these 4 conditions are met:

• An insured is unable to do 2 of 6 activities of daily living: eating, dressing, bathing, transferring, toileting or continence;
• OR has a diagnosis of cognitive impairment like Dementia or Alzheimer’s in which the insured is a threat to themselves or to those around them.
• There must be an expectation that care will be needed for longer than 90 days.
• There must be a written plan of care

The cost is ASTRONOMICAL!

Nursing Homes and Assisted Living Facilities range from $110,000-$180,000/year depending on where you live. Home Care (where we all want to be) is the most reasonable. Full-Time 24/7 Home Care ranges from $75,000-$110,000/year.

A cash benefit pays the monthly benefit to any caregiver including family members with no requirement for bills to be submitted. 

A reimbursement benefit reimburses the cost of a licensed caregiver and bills must be submitted.

Any benefit paid by the insurance company is better than paying for all of your care out of pocket. Policies should always be designed around a comfortable budget. Having a chunk of coverage is better than having no coverage at all.

Any 2 people living together are eligible for a partner’s discount. This includes same-sex couples, siblings, business partners and parents and children within 25 years of each other.

There are options to cover an unhealthy spouse. Finding the right product is essential.

You will always be given options to pay less but keep in mind no matter how large the increase, it will be less costly than starting out with a new policy. Insurance companies offer an option to have a paid up policy. This option is the worst. It is important to speak with a specialist prior to making changes to your policies.