Long-Term Care Insurance

Long-Term Care Insurance Information

Fort Mill Long-Term Care Insurance

Because of old age, mental or physical illness, or injury, some people find themselves in need of help with eating, bathing, dressing, toileting or continence, and/or transferring (e.g., getting out of a chair or out of bed). These six actions are called Activities of Daily

Living–sometimes referred to as ADLs. In general, if you can’t do two or more of these activities, or if you have a cognitive impairment, you are said to need “long-term care.”

Long-term care isn’t a very helpful name for this type of situation because, for one thing, it might not last for a long time. Some people who need ADL services might need them only for a few months or less.

Many people think that long-term care is provided exclusively in a nursing home. It can be, but it can also be provided in an adult day care center, an assisted living facility, or at home.

Assistance with ADLs, called “custodial care,” may be provided in the same place as (and therefore is sometimes confused with) “skilled care.” Skilled care means medical, nursing, or rehabilitative services, including help taking medicine, undergoing testing (e.g. blood pressure), or other similar services. This distinction is important because generally Medicare and most private health insurance pays only for skilled care–not custodial care.


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.

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