Insurance is a tool that helps protect individuals and families against future risks and financial loss. Long term care insurance is an insurance product which ensures that your long term care costs are paid for. Long term care insurance can provide benefits for home healthcare, assisted living facilities, adult day care, and nursing home care. It has the ability to cover some or all of the costs that are not covered by health insurance or even Medicare. In order to be eligible to receive benefits from a policy the insured has to be unable to perform two of six normal activities of daily living (ADLs) (for example bathing, eating, walking, toilet activities and dressing among others).
The need for long term care does not necessarily depend on one’s age. Statistics show that almost 70% of people aged 65 years and above will at one time require long term care services. Close to 40% of the people receiving long care services today are between the ages of 18 and 64 years. This is a result of an early onset of conditions such as Alzheimer’s and Parkinson in individuals under the age of 65.
The potential need for long term care services poses a significant financial risk for everyone. These services are very costly whether you are receiving care at home or in a nursing home. According to the Genworth 2011 Cost of Care Survey, the median annual cost for a semi-private nursing home room in the United States is $70,445. This cost has increased by 5% each year over the last six years. This is because the costs of long term care are not covered by health insurance. Contrary to many people’s expectations and beliefs, long term care services are not meant for old people only. Young and middle aged individuals may find themselves physically incapacitated and in need of long term care services after being involved in an accident or suffering from a cognitive impairment.
The US Department of Health and Human Services projections indicate that by the year 2020, over 20 million Americans will need long term care services at home, in assisted-living facilities, and in nursing homes. Though family members, volunteers and friends can assist with supplementing the required assistance, visiting nurses, medications, adult daycare and other necessary services will be a significant financial burden for anyone without long term care insurance.
Long term care insurance can provide a range of benefits to help cover the long term care costs you would incur should you need home care or if you are confined in an assisted-living facility, an adult daycare, or nursing home. These policies will often cover hospice care, respite care, and other specialized services such as Alzheimer’s facilities.
As time goes on the cost of care will continue to rise, making the need to secure coverage today important. The cost of long term care insurance is based on the insured’s age when coverage is attained. The younger you are when you purchase coverage the less expensive it will be. When considering long term care insurance coverage it is important to work with an individual who understands your needs and what products are available to fulfill your planning goals.
To learn more about what long term care insurance costs you should request a long term care insurance quote. By working with a professional advisor they should be able to tell you the differences in policies and what to expect in the event that you require long term care services.