Long-Term Care Insurance: What It Covers, Costs and Pros and Cons

Planning for the Additional Care You May Need as You Age

These days, it seems that people are living longer than ever, which is a great trend worth noting. The bad news, however, is that the older a person gets, the more likely they are to encounter health issues. Of course, if you live a long time with major health issues, things can easily get quite costly.

Chances are good that as you enter and move through your golden years, you will need some sort of long-term care. You may think that you have everything you’ll need already set up between Medicare and whatever supplemental health insurance you have, but you may actually need more coverage. As more and more of us are living longer, we are encountering the burden of caring for ourselves as we experience the health challenges associated with aging. One such cost is for long-term medical assistance. Many financial experts are recommending long-term care coverage as part of a solid financial plan for anyone as they age past fifty.

Some people opt for long-term care insurance in order to cover expenses like the cost of assisted living or home health care, should they need it. But how can you tell if long-term care insurance is right for you or your senior loved one, and what can you expect to pay? Read on for what you need to know to make this critical choice for you and your family.

What Is Long-Term Care Insurance?

Long-term care insurance is, simply put, insurance coverage that provides for the costs associated with your care should you develop a chronic condition of some sort, experience a disorder of some kind, or a disability that requires consistent care in either your home or an assisted living facility.

It is important to note that waiting until you need such care to purchase insurance is not really an option. If you’ve already developed some sort of disorder, disability, or chronic condition that requires it, you likely will not be able to qualify for this kind of insurance. That is one reason that it makes greater sense to purchase coverage while you are still relatively young and healthy.

How Long-Term Care Insurance Policies Work

Once you’ve selected a long-term care insurance provider and applied and qualified for coverage, you will pay premiums on the policy for the duration of your coverage. That coverage will begin once you’ve become unable to complete a couple of what are called “activities of daily living” on your own. These activities include bathing yourself, feeding yourself, getting in and out of bed, dressing, and other basic tasks associated with living.

Similarly, if you begin to suffer from Alzheimer’s or another condition that impairs your cognitive ability, coverage will kick in.

What Long-Term Care Insurance Covers

The main reason for buying long-term care insurance revolves around the fact that it covers what general health insurance does not. Specifically, these include the costs associated with in-home long-term health care, or nursing home or assisted living care.

Regular health insurance does not typically pay for the help you may need completing the tasks associated with daily living should you experience disability or a debilitating condition. Of course, you will want to make sure that the policy you buy actually covers the programs and services you expect you will need.

What Long-Term Care Insurance Costs

Rates for long-term care coverage vary widely depending on where you live and several other factors. Rates vary a bit from company to company, and depend greatly on the amount of coverage you are seeking.

There are also differences in policy costs associated with your age when you apply, your gender (women live longer than men in general), and other factors associated with your likelihood to need coverage down the line. Like with all forms of insurance, the more likely you are to need it, the more it will cost.

You can use a long-term insurance calculator to figure out exactly what kind of monthly premium you can expect to pay.

The Pros and Cons of Long-Term Care Insurance

The obvious advantage of long-term care insurance is that it takes away the worry of what you will do if you find yourself in need of long-term care. The two primary reasons why many people are electing to purchase long-term care coverage are first, to protect their savings, and second, to provide for better quality of care and greater diversity of care options as they age.

The main disadvantage of long-term care insurance is that it is yet another monthly premium you will have to pay, on top of all of your other existing bills. Further, if you wait until you need it, then you may not be able to get the insurance at all.

To get the maximum benefit of long-term care insurance for the best possible rate, you will need to start buying the insurance when you are young and healthy. It may hurt to give away that money every month for something you may feel like you will never need, but in the end, it could very well be worth it. Long-term care policies can be a great investment in your financial and physical health as you age.

Should You Get Long-Term Care Insurance?

There are a few factors you will want to consider when thinking about long-term care insurance. First, is it somewhat likely you may need long-term care down the road? Do you have health problems now? Is there a history of health problems in your family when family members are older? Are you at high risk for health problems later in life for any reason?

You will also want to think about the kind of support system you have. Do you have children, siblings, or other relatives who would be in a position to help you should you find yourself in need of senior care? Do you have significant retirement income to draw on?

If the answers to the health questions are mostly yes, and the answers to the support questions are mostly no, then you should strongly consider long-term care insurance.

How Else Can You Pay for Senior Care?

If you are a senior in need of long-term care, Medicaid may cover some of your expenses, but probably not all of them. You may want to consider setting up a medical investment account now to draw on should you need it later in life. Many seniors also depend on the generosity of children and other loved ones to help out with the cost of extended care.

Get Help Finding the Right Care

If you or a loved one is in need of senior care right now and you are in the Portland area, Golden Placement Services can help you find the kind of care that best suits your needs and budget, whether that is an assisted living community, nursing care or other senior care assistance. Our help is free to families. Call us at 503-723-7145 or contact Golden Placement Services today.