What is Long Term Care?
Many people think “Long Term Care” means a nursing home. In fact, Long Term Care includes a wide continuum of care situations. Some people receive Long Term Care in an Assisted Living Facility, others attend an Adult Day Care Facility, and for many, Long Term Care can also be received in your own home.
The level of care depends on several factors. These include the type of impairment, the severity of impairment, and in some cases, the ability to pay for care.
Long Term Care services may be necessary at any age. The following are three of the most common reasons for Long Term Care:
- Short Term Medical Treatment – Long Term care may be needed when an individual is recovering from surgery or other temporary conditions. For many, Long Term Care helps leaving the hospital and going home.
- Accidents and Injuries – Acute conditions such as broken hips, strokes, disabling accidents and heart attacks often require a longer period of Long Term Care.
- Chronic Illness – Ongoing conditions such as dementia, emphysema or even functional decline (due to the aging process) will result in an extended need for Long Term Care services.
Long Term care services are generally custodial and personal in nature. Because neither Medicare nor medical insurance pay for any custodial care, this should be a major concern to you.
What is the Cost of Long Term Care?
Long Term Care services can be expensive, and costs vary widely based on where you will be receiving care.
National rates are as follows*:
- The average daily rate for a private room in a nursing home is $203, or $74,095 a year
- The average daily rate for a semi-private room in a nursing home is $176, or $64,240 a year
- The average monthly rate for assisted living facility is $3,061, or $36,372 per year
- The average hourly rate for a home health aid is $19, or a 10 hour day for $190
These costs are expected to DOUBLE in 20 years!!
“An American at age 65 has an average life expectancy of 18.7 more years.”
How will I Pay for Long Term Care Services?
You can pay for these services a number of different ways:
- Pay out of your own pocket and deplete a lifetime of savings
- Apply for Medicaid, but you will be required to spend down your assets and “become a ward of the state”
- Purchase a Long Term Care Insurance Policy
How can Long Term Care Insurance Help?
Long Term Care Insurance will provide benefits to help you pay for the Long Term Care services as you need them. A Long Term Care policy is an important part of your financial portfolio. It can help to:
- Protect your assets so you have the money to do all the things you planned to do in retirement
- Preserve your estate to pass unto your heirs.
Long Term Care can also give you “piece of mind” knowing you can:
- Remain in your own home
- Maintain Control
- Receive the quality care you need
- Retain your dignity
- Avoid burdening your family with the responsibility of caring for you
Make a Commitment to Take Care of Yourself
Throughout your life you’ve made the right choices to take care of yourself and your family. Keep that commitment to yourself and your loved ones by being ready for the future. When you ask for information about Long Term Care Insurance, you’re taking the first step toward a sense of security.
Abe Glickman, LTCA, LTCP
Member: AALTCI, NAHU, NAIFA, SOA
Abe Glickman Insurance Group
Toll-Free Phone: 877-298-5824
“It is better to create a plan 10 years too soon than one day too late.”
Questions or Comments? Give me a call!
*Data from Met-Life Market survey of Nursing Home & Assisted Living Cost and Home Health Care Cost/Mutual of Omaha