Long Term Care Insurance
Long-Term Care is the medical and/or personal care services required by a person with a chronic disability or illness. The Health Insurance Association of America estimated in 1998 that at least 40% of the population over age 65 would enter a nursing home before they die. Half of those requiring care are released within six months. Of those remaining, the average stay is 2 ½ years. The average cost is about $41,000 a year. By the year 2030, the average annual cost of a nursing home stay is expected to increase due to accidents, cancer, strokes, etc. Approximately 7 million men and women were living in nursing homes in 1997, and some stays have exceeded 20 years.
The Need: Some people may require daily medical attention while others may simply need help with the basic activities of daily living (ADL) such as bathing, dressing, taking medication, eating, using the toilet, getting in or out of bed, or walking. A typical nursing home stay commonly falls into 2 categories: short term stay (1-3 months), which involves skilled nursing care, and typically follows a hospital confinement; and lengthy stays that comprise mostly maintenance and custodial care and that average stay is 2.5 years.
Levels of Care
- Skilled Care. Refers to a patient who needs daily nursing care, physical therapy, etc., provided or supervised by professional nurses and/or therapist under a physician’s orders.
- Intermediate Care. Patient requires only intermittent or occasional rehabilitative care or nursing.
- Custodial Care. Patient needs help with activities of daily living (ADL). Does not require a registered nurse or a therapist, but need for such care is basked on physician’s orders.
- Long Term Care Insurance. Policy may be issued on an individual or a group basis. The Health Insurance Association of America has prepared a list of “typical coverage” offered by leading sellers of Long-Term Care insurance. *
Long Term Care insurance may provide for: **
- Services covered. Skilled, intermediate and custodial care, home health care, adult day care.
- Daily benefit: $40 - $300/ day nursing home. $40-$300 day home health care.
- Benefit eligibility: Physician certifies that benefit is medically necessary
- Benefit Period: 2 years, 3 years, 5 years or life.
- Alzheimer coverage: Yes (if not preexisting condition)
- Deductible periods: 0-180 days
- Renewability: Guaranteed
- Pre-existing condition: 6 months
- Inflation consideration: Yes
- Age limits for issuance: 50 -84
- Waiver of premium: Yes
- Free look – 30 days
* Note: The more benefits included in the policy, the larger the premium. Since every policy may be different, the terms, conditions and limitations of the policy must be carefully reviewed before making a purchase.
** This coverage contains benefits, exclusions, limitations, eligibility requirements and specific terms and provisions under which the coverage may be continued in force or discontinued. Policies MAY NOT BE AVAILABLE IN YOUR STATE or variations may not apply.
To order a FREE booklet called "Avoid Mistakes in Buying Long Term Care", please refer to the "Contact Us" section.
>> Contact us now for assistance with your long term care insurance needs
>> Back to Family Wealth Insurance Planning