Long Term Care Insurance
What is Long Term Care insurance?
Long Term Care insurance (LTCi) provides funds to pay professionals to provide care when you cannot perform everyday tasks because of a physical disability or a cognitive impairment. Such services may include assistance with bathing, getting dressed, and eating. These services may be administered in your home, someone else's home, adult day care, assisted living, or a skilled nursing home. Straight Talk about Common Misperceptions Vol 1: Long-Term Care Basics
LTCi helps defray the cost of extended, chronic care as a result of an accident, illness, advanced age, or cognitive impairment such as Alzheimer's disease or Parkinson's disease. LTCi can make the difference between a lifestyle of providing care for someone versus supervising the care provided by a health care professional. LTCi provides independence and choice when care is needed. There are multiple ways to fund your long term care plan. We can consult you both on traditional and combination products that have a long term care benefit on a life insurance or annuity. Some life insurance policies permit a portion of the death benefit to be accessed for long term care. The selection of type of plan you choose will depend on your health, finances and preferences. There are tax benefits to those that purchase long term care insurance.
Individual consumers have many choices on plan type and plan design. Learn the facts and how they fit into needs and preferences.
Employer sponsored groups may have premium discounts and possibly less medical questions on long term care insurance.
Association sponsored groups may have premium discounts. Baygroup Insurance can work with associations and its members to learn more and make an informed decision.
The Reality
As we live longer due to the constant advances of modern medicine, we will age, become frail, or contract an illness or disease at ANY age that will cause emotional, physical and financial strain on the family. Many of us, our friends, and relatives will require LTC at some point during our extended lifespan. Disabling accidents or chronic illnesses that require basic levels of assistance such as bathing, dressing, or transferring (getting in or out a bed or chair) affect the working age adult as much as the retiree. With LTC costs increasing due to the growing boomer population and shortage of caregivers, planning is essential to securing your financial future. The fact is that about 3 out of 4 people will need LTC sometime after age 65, according to the nonprofit Life and Health Insurance Foundation for Education (LIFE).
The Cost
According to the national median, current daily home care costs $26/hour for homemaker services and $27/hour for home health aide services. Daily nursing home costs are approximately $297/day (private room) and $260 (semi-private room). These costs, listed in the Genworth Cost of Care Study, represent a 1.96% and 2.41%, increase respectively from 2020, and amount to an annual nursing home cost of $108,405 (private room) and $94,900 (semi-private room). In major metropolitan areas, such as Washington D.C., costs may be higher for all types of LTC services.
Before the need arises for long-term care, you should consider:
- Where will the money come from to pay for long-term care?
- How will this affect your family?
- What impact will this have on your retirement savings and assets?
Employer sponsored groups may have premium discounts and possibly less medical questions on long term care insurance.
Association sponsored groups may have premium discounts. Baygroup Insurance can work with associations and its members to learn more and make an informed decision.
Best Nursing Home Rankings per U.S. News and World Report.
When can I collect long term care benefits?
When you meet the standardized defition of chronic impairment (2 of 6 Activities of Daily Living on at least a stand-by basis or supervision for a cognitive impairment) and met the policy elimination period (deductible).
What if I never need long term care?
- If you purchase some form of LTC insurance and never need it, you and your family will be very glad you did not need it.
- If you purchase LTC insurance and you need care, you and your family will be very glad it was purchased.
- If you do not purchase LTC insurance and you need care, you and your family will desperately wish you had!
VETERANS BENEFITS
Veterans that serviced during eligible war-time period may be eligible for some assistance for long term care. The are income and asset limitations.
In addition to completing application, you must have the following documentation:
- Discharge/separation papers (DD-214). If you need to request military records please ask for Form SF-180
- Copy of Marriage Certificate
- Copy of Death Certificate (surviving spouses only)
- Proof of all medical expenses that are not reimbursed by insurance, Medicare, or Medicaid. (Examples include Assisted Living or Nursing Home costs, medications, insurance premiums, medical bills, etc.)
- Physician statement including the following information
- Diagnosis/Prognosis
- List all disabilities
- What activities of daily living patient needs assistance with
- Why assisted living, nursing home or homecare is recommended
- 24 hour supervision is recommended
- If the Vetran or surviving spouse is living in assisted living or a nursing home attach a statement from the facility with the following information:
- Date they became a resident
- Monthly payment (include if this is a private pay or Medicaid)
- Attach a voided check
- Copy of the most recent bank account and investment statements
- If the veteran has been recently hospitalized, attach all proof.
Baygroup will assist you in finding a LTCi policy that meets your needs and fits your budget. Learn more
For more information about LTCi watch additional videos, check out our FAQ's and review PLAN NOW Starter Kit.
