Why Long Term Care Insurance ?
Understanding Long Term Care
Long term care (LTC) is a crucial aspect of aging that often goes overlooked. More than 50% of Americans, age 65 or higher, will need some type of long term care in their life. Medicare or your private health insurance do not cover extended long term care. If you can no longer take care of yourself for an extended period of time , you will need long-term care services like nursing home or an assisted living facility or home based care. Long Term Care insurance covers such costs and protects your hard earned savings and helps to reduce financial and emotional stress for your loved ones.
Key Statistics and Trends..
- 51% of women aged 65 and over and 39% of men will need some type of long-term care
- Women are generally more likely to need long term care than men and for longer duration
- Unmarried individuals are more likely to need long term care than married
- Typically LTC insurance is more expensive for women than men
- The average cost of a year’s care in a private Medicare-certified nursing home is more than $100,000
- For 40 hours of help per week, average in-home care costs, more than $55,000
- A year in an assisted living care facility would cost more than $60,000
- The cost of care increases at average rate of 5% or more
Who pays for LTC ?
Some people think that their disability or private health insurance will pay for their LTC. The fact is these policies cover limited benefits, if any. Some even think that government programs like Medicare and Medicaid will pay for their LTC. Sadly, these programs have many restrictions and pay for only some services. For example, Medicare may pay for a maximum of 100 days of services. Medicaid is available to individuals who meet federal and state poverty guidelines. In California, Medi-cal is the state’s Medicaid program.
Most people have to rely upon their personal resources, like personal savings, retirement fund or pension for their LTC needs. That is why, you should consider Long Term Care Insurance.
Protecting Your Family and Assets
One of the primary reasons you should consider long term care insurance is the financial burden associated with unplanned medical expenses. Without proper coverage, the costs of long term care can quickly escalate, leading to significant strain on personal savings and family resources. Long term care insurance provides a safety net, allowing individuals to allocate funds wisely while maintaining the quality of care they desire.
Long term care insurance not only safeguards your finances but also protects your family from the stress of care giving. The emotional and physical toll on family members can be immense when one partakes in care giving roles. By investing in long term care insurance, you empower your loved ones to support you while alleviating the pressure of day-to-day care responsibilities. Moreover, this insurance can help preserve your estate, ensuring that your hard-earned assets are passed down to future generations rather than consumed by healthcare costs.
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