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Long-Term Care

Most people plan for their retirement by investing in IRAs, employer-sponsored retirement plans, and other vehicles to reach their financial goals and ensure a secure retirement. However, one part of the retirement planning is often overlooked - addressing the need for a long-term care.

 

With the aid of today's advances in medicine and science as well as better nutrition, many people are living into their 80’s and beyond. As people are living longer than before, the chance of developing a chronic condition, physical or cognitive disability for which they will require long-term care assistance increases significantly. According to the U.S. Department of Health and Human Services, by 2020, 12 million Americans will need long-term care. A study also shows that people who reach age 65 will likely have a 40% chance of entering a nursing home and staying there for the average length of 3 years.

 

The unfortunate reality is that long-term care is very expensive and costs are expected to increase in the future. The average annual cost of a nursing home in the United States is $70,000 a year and adult day care or home care can cost more than $30,000 a year.

 

The question then becomes how to pay for long-term care expenses. Many people mistakenly believe that the government will pay for their long-term care. This is not the case.

  • Medicare, a federal medical insurance program for people age 65 or older, only pays for skilled care in a nursing facility for a short period (less than 100 days) and if the person meets all of Medicare’s requirements for receiving daily skilled care. Medicare does not cover long-term custodial care.
  • Medi-Cal, a joint federal-state government pro­gram for low-income individuals, will pay for a person’s long-term care expenses only if the person has income and assets below the state’s poverty level. The person is also subject to look-back period on asset transfers and gifts so that they cannot give away assets to meet eligibility criteria.

 

Neglecting to plan for long-term care can have significant financial and emotional consequences for individuals and families. Most people simply do not have the financial resources to pay for long-term care services out-of-pocket for an extended period. By planning ahead and purchasing long-term care insurance, you can ensure that your family’s financial, emotional, and physical well-being are protected and preserved.

 

Long-term care offers a variety of services, including continuing medical and non-medical care to people who have a long-term illness, chronic condition or disability. Long-term care helps meet health or personal needs.

Long-Term Care Can Be Provided At:

  • Your own home
  • Nursing Home Care
  • Skilled In-Home Nursing Care
  • Adult Day Care Center
  • Assisted Living Facility

 

Long-Term Care Services Can Be Provided by:

  • Nurses, Certified Nursing Assistants
  • Physical, Occupational, and Respiratory Therapists
  • Home Health Aides who assist with personal care activities such as bathing and dressing
  • Homemakers who are not trained to provide personal care, but who can help with household and other tasks such as laundry, cooking, and shopping

 

Long-Term Care Benefits*:

  • Assistance over an extended period, usually more than 90 days. 
  • On-going services, assistance and support to people who have lost some or all capacity to function on their own due to chronic illness or disability such as stroke, heart disease, cancer, advanced diabetes, arthritis, or hypertension
  • Assistance and protective supervision to persons suffering from cognitive impairment (such as Parkinson’s or Alzheimer’s diseases) who progressively lose their ability to reason and remember
  • Ongoing help with the activities of daily living such as bathing, dressing, transferring, continence, eating and toileting
  • Assistance with shopping, taking medications, preparing meals, handling personal finances, doing laundry, housekeeping and transportation

 

To learn more about Long-Term Care, please fill out the “Get a Free Quote” form above or call us at Toll Free number (888) 592-7862 and one of our agents will be happy to help you with your insurance needs. Start building the retirement of your dreams today!


 

*Information is for illustration purposes only. For full details, please refer to your policy or speak to one of our agents.