Understanding Long Term Care Insurance

Extended Health Care or "Long Term Care" is the type of care someone may need when he or she is not able to perform some of the basic activities of daily living such as:

• Eating
• Bathing
• Continence
• Dressing
• Toileting
• Transferring in and out of bed, chair and wheelchair

Long term care needs typically arise from:

• Frailty due to advanced aging
• A debilitating injury
• A progressive illness
• A severe cognitive impairment
• A combination of chronic conditions that degrade a person's health

Care can be provided in a variety of settings, including in one's home, assisted living facility or a nursing facility and even in a hospice facility. 

Anyone who wishes to prepare for their future medical costs, maintain their independence, and protect their assets from the cost of extended care.  Those who want to leave a legacy of financial and medical preparedness.

Public programs:

• Medicare covers just those services that are medically necessary, such as doctor visits, drugs, and hospital stays, and it is limited to conditions that are expected to improve, like physical therapy after a fall or stroke.
• Medicaid programs often pay for long term care services, but to qualify for benefits an individual must meet their state's poverty level guidelines.

Private or family support:

• Family members and friends can provide care or funds for long term care needs. But often, the physical, emotional, financial, and daily time requirements can have a significant negative impact on caregivers and their own families. Prior to relying on family support, these factors should be taken into consideration.

Self-funding:

• You can pay for their long term care costs out of savings, retirement savings or from retirement income.  However, you may not have saved enough prior to an event occurring that creates a need for care or enough to fund the costs of an extended need for care.  Extended care, even in one's home, is not cheap.  This type of "planning" may be a significant drain on your savings and retirement. 

Insurance choices include:

• Health Insurance:
  May only cover part of the cost for hospital stays, doctor's visits, and prescription drugs, but may not cover the care needed for daily activities related to the need for extended health care.  You should check you Health Insurance policy for details. 

• Disability Income Insurance:
  Replaces lost income in order to cover basic living expenses such as food, mortgage, rent and clothing,  Disability insurance typically ends with retirement or if on claim, at age 65 or 70.

• Critical Illness or Cancer Heart Attack and Stroke Insurance:
  While these types of policies are very popular, they pay lump sum benefits at the time of diagnosis to assist in treatment and recovery from a covered condition and while some funds may be left to cover extended care they are not designed for ongoing payments to reimburse health care costs. 

• Long term care insurance:
  Long term care insurance is designed to protect a portion of a person's assets against health care costs due to long term care needs.  Having the peace of mind knowing that you will have funds available to provide for health care and personal wealth preservation in the future is why a long term care policy should be a part of your financial planning. 

We will work with you and or your advisers to find suitable and affordable solutions to help you plan for and cover some of the costs of Extended Health Care using Long Term Care Insurance.