Long Term Care Insurance

Health plans generally only pay for skilled care.  That’s care to get you better.  Once you’re in a maintenance condition, you’re not generally covered by a health plan.  We’re living longer with more chronic problems. 

47% of people over age 85 have some type of dementia, most commonly Alzheimer’s.  An Alzheimer’s patient can live an average of 8 years and as many as 20. 

Care giving effects 1 out of 4 families in the United States.  We’re living longer so the chance of needing care is increasing and we may actually spend more time caring for our parents than our children.

What are the chances of a government-funded program for long term care?  The federal government is already spending 44 cents of  every federal income tax dollar on entitlements, primarily Social Security, Medicare and Medicaid. 

Medicare only covers up to 100 days in a nursing home, but patients usually collect less because Medicare only pays for skilled care.  Skilled care is the type of care provided for a recovery or to prevent a relapse. 

Medicaid is a federal and state welfare program for low-income individuals. In order to qualify for Medicaid, you must spend down a large portion of your assets. 

Long-term care includes home-based care (meal preparation, medications, light housecleaning), assisted living facilities and nursing home care.  It assists with activities of daily living such as

                        bathing                        eating
                        continence                   toileting
                        dressing                       transferring
Key Issues

1.  If you wait until you need it, it’s unattainable or it’s cost prohibitive.

2. You need to consider your family history, life expectancy, and the probability of needing such care.

3. If you decide you need coverage, you need to have enough coverage so you don’t have to tap assets (assuming you want to leave an inheritance). 

4. Major Policy Feature Choices:  Amount of daily benefits, benefit period, elimination period, and cost of living adjustment among others.