Long Term Care Insurance
Long Term Care Insurance Information
Long term care insurance pays a daily benefit to use toward long term care costs.
What is Long Term Care?
Long term care is assistance with performing the functions necessary for everyday life. That usually means help doing several Activities of Daily Living (ADLs) or Instrumental Activities of Daily Living (IADLs). Activities of Daily Living are functions to maintain your health and hygiene, such as bathing, using the restroom, getting dressed, and feeding yourself. Some Instrumental Activities of Daily Living include managing the household, managing finances, going grocery shopping, taking care of a pet, and more. Long term care assistance can take place in or outside of the home.
Some of us are lucky enough to have the help of a trusted friend or loved one to serve as a caretaker. In many other cases, we can turn to the help of a home health aide, homemaker services, an adult day care facility, an assisted living community, or a nursing home. Each of these services comes with a cost, which can vary based on your region and the level of privacy you prefer.
How Much Does Long Term Care Cost?
The national median monthly cost for a home health aide, according to Genworth, is around $4,576. The monthly cost for homemaker services is around $4,481. Care in an adult day health care facility is around $1,603 each month and care in an assisted living community costs around $4,300 in the same time frame. Long term care in a semi-private nursing home room will cost around $7,756 each month and care in a private nursing home room will cost around $8,821.
Long Term Care Insurance
Long term care insurance provides a fixed daily benefit to use toward your long term care costs. You can use the money for services in the home or at a facility.
Preparing for Long Term Care Costs
The majority of your Social Security benefit payment will need to go toward your long term care services if you receive Social Security payments. Many people sell their homes to pay for their room in a nursing home or assisted living community. The ability to liquidize your assets is not available to everyone. Not everyone has had the means to save or invest to create a substantial enough retirement income to afford assisted living. Nevertheless, they will need long term care.
Luckily, if you have a low income and limited resources, you may qualify for Medicaid. Medicaid will accept you if you have resources and an income below a certain limit. And unlike Medicare, Medicaid will cover long term care services.
Selecting Long Term Care Insurance
Long term care insurance helps us to afford the long term care services that we will most likely need in the future. To prepare for that reality without having to liquidize your assets and sell your home, you can purchase long term care insurance. For more information on long term care insurance or to purchase a policy, contact The Coleman Agency.