Long-Term Care

Long-term care insurance helps provide for the cost of long-term care beyond a predetermined period of time. Long-term care insurance covers care generally not covered by health insurance, Medicare, or Medicaid services.

Individuals who require long-term care are generally not sick in the traditional sense, but instead, are unable to perform the basic activities of daily living (ADLs) such as dressing, bathing, eating, toileting, continence, transferring (getting in and out of a bed or chair), and walking.

Age is not a determining factor in needing long-term care. About 60 percent of individuals over age 65 will require at least some type of long-term care services during their lifetime. About 40% of those receiving long-term care today are between 18 and 64. Once a change of health occurs, long-term care insurance may not be available, so it is important to secure coverage when healthy. Long-term care insurance generally covers home care, assisted living, adult daycare, respite care, hospice care, nursing home and Alzheimer's facilities. If home care coverage is purchased, long-term care insurance can pay for home care, often from the first day it is needed. It will pay for a visiting or live-in caregiver, companion, housekeeper, therapist or private duty nurse up to seven days a week, 24 hours a day (up to the policy benefit maximum).

Long-term care policies range in pre-determined care lengths, daily monetary spending allotments, and has the election of being either a qualified or non-qualified plan, depending on one's tax obligation.

With health care cost on the rise, home health care and nursing facility care can run upward of $4,500 a month. Think Long Term.