Who
Needs Long Term Care?
Long term care insurance (LTCI) is expected to become
the most sought-after benefit of the next decade. Today in America, 14
million people of all ages need some type of care at home or in a nursing
facility. Increasingly, long term care is provided at home-and, it’s not
for seniors only. Almost 40% of those who need help with everyday
activities are working age adults. At home and in the workplace, long term
care issues affect everyone.
One study shows the average caregiver now devotes 18
hours a week to helping elderly loved ones. To balance the demands of work
and home, employees often miss business meetings, decline transfers or
business trips, are late to work, reduce their hours, or take unpaid leave.
As America ages, the burden will grow: within the next 25 years, one in
three workers will provide some type of long term care.
It is important to remember that LTCI is not just for
the elderly. In fact, more than five million working-age Americans are
currently receiving long term care. The most dramatic increase has been in
the 17 to 44 age group, which has experienced a 400% rise in severe
disabilities over the past 25 years. LTCI is a smart choice at any age.
Long Term Care Funding Options
- Self-Insure.
By choosing this option, you will pay all incurred long term care
expenses out of pocket. With costs ranging between $150 and $250 per
day, how long could you afford this option?
- Medicare/Medicare
Supplement. If you qualify, Medicare pays all eligible
expenses for the first 20 days. Days 21 through 100 are paid after a
$105 per-day co-payment. A Medicare supplement will cover this
co-payment. After 100 days, Medicare pays nothing.
- Major Medical.
Traditional health insurance is limited in what it will pay for long
term care. There are many gatekeepers to pass through to even qualify.
Once a patient reaches a plateau or decline in recovery, most health
insurance will cease.
- Long Term Care
Insurance. LTCI will pay all long term care needs based
on the coverage you choose. After the elimination period is satisfied,
all costs up to your daily or monthly benefit will be covered. Coverage
does not cease when your condition deteriorates. LTCI offers you the
ability to choose where care is received and who will provide it.
What is Long Term Care Insurance?
Long Term Care Insurance (LTCI) has traditionally been
thought of as nursing home insurance. In reality, LTCI has evolved to
include far broader coverage. It is the kind of help you need if you are
unable to care for yourself because of a prolonged illness, accident or
disability. This type of care ranges from assistance with the activities of
daily living to home care to 24-hour skilled, intermediate or custodial
care. Most people realize too late that their Major Medical Insurance, HMO,
Medicare or Medicare Supplement does NOT pay for Long Term Care. LTCI is
the logical and most efficient solution for many people.
Long Term Care Insurance pays for:
-
Nursing Home
Care
-
Home Health Care
-
Therapist, Homemaker and Companion Services
-
Adult Day Care and Hospice Care
-
Alternate Care Facilities such as Assisted Living
How long could I
afford nursing home or home care?
Currently, LTC
averages between $150-$250 per day. The following chart illustrates how much
care would cost for 1 year, 3 year, & 8 year durations:
Cost per Day
1 Year 3 Years 8
Years
$150 $54,750
$164,250 $438,000
$200 $73,000
$219,000 $584,000
$250 $91,250
$273,750 $730,000
What does LTCI cost?
Premiums vary
according to an individual’s age, health, and the benefit options selected.
(At Z-Planning Group, we work with multiple carriers to ensure our clients
receive the most competitive plans.)
How Do You Qualify for Benefits?
To qualify, you
must meet one of the following criteria:
1.
Need assistance with two
of the following activities of daily living (ADLS): dressing, eating,
toileting, bathing, transferring, and continence.
2.
Suffer from cognitive
impairment (i.e., dementia or Alzheimer's disease).
If either criteria
is met, your doctor must certify that you will require care for at least 90
days.
Why
Consider LTCI?
The Elimination Period—or deductible period—is the
amount of days that must be satisfied before benefits are paid. It usually needs
to be met just once during the policy’s lifetime. (A waiver of the elimination
period may be available for home health care benefits.)
R