Long Term Care Insurance

Long Term Care insurance, simply put, protects assets. LTC is a product sold to individuals or couples to help provide for the cost of long-term care beyond a predetermined period. LTC insurance pays for care that would generally not covered by private health insurance, Medicare or Medicaid.

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 such as dressing, bathing, eating, toileting, getting in and out of a bed or chair, and walking. Long Term Care isn't necessarily “long term”. A person may need care for only a few months to recover from surgery or illness.

As an individual ages, there is an increased risk of needing this form of care. In the United States, Medicare will not cover the expenses of long-term care, but Medicaid will for those who can not afford to pay. Age is not a determining factor in needing long-term care assistance. About 60% are over 65, however, 40% of those receiving long-term care are between 18 and 64. Since government aid will not assist someone with these costs until assets have been “spent down” to a bare bones minimum, planning to protect your assets with this coverage is essential.

The younger an individual is, the more affordable the coverage will be. An added benefit to purchasing an LTC policy at a younger age is that health issues are less likely to be a disqualifying factor and there are many tax and spousal perks. Long Term Care Plans create more options today for individuals to maintain more control over a medical situation using care coordinators, providing funds to pay for home health aids and modifying a home to make it a comfortable, viable alternative to a nursing home.