What You Should Know About Long-Term Care Insurance

What You Should Know About Long-Term Care InsuranceLong-term care can be confusing, but it’s a critical issue to address as a large part of the population in the United States is reaching retirement age. According to Medicare.gov, it’s estimated that by the year 2020, nearly 12 million people will need long-term care and this number will grow with the aging baby boomer population. As a result, many people have questions about what is it, what it costs, and whether their health or disability insurance covers the cost. We will cover these important questions in this post.

What is long-term care?
The U.S. Department of Health and Human Services (HHS) defines long-term care as a range of services and supports you may need to meet your personal care needs. Most long-term care is not medical care, but rather assistance with the basic personal tasks of everyday life. HHS predicts that someone turning 65 today has almost a 70 percent chance of needing some type of long-term care services in their remaining years.

What does long-term care cost?
According to 2013 biennial study by John Hancock the average cost for care depends on the type of care given. For example, the average cost of living at a nursing home is $82,855/year for a semiprivate room. However, assisted living facilities are less expensive with the average cost being $41,124/year. The least expensive type of paid care is having help at home for 6 hours per day, 5 days per week with the average costs being $29,640.

Does health or disability insurance covers the cost of long-term care?
Unfortunately, most health and disability policies do not cover long-term care costs. Medicare will cover short stays in a nursing home or a limited amount of home care, but only under very strict conditions. In order to qualify for Medicaid to cover the cost of long-term care, you must exhaust almost all of your resources and meet Medicaid’s other eligibility requirements.

Long-term care insurance can play a vital in protecting your assets and making sure you have good quality of life as you age. At AssuredPartners NL, our knowledgeable agents can share resources and information about long-term care insurance that will help you make decisions when it comes to your future. Contact us to see the difference AssuredPartners NL can make.

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