Long Term Care Insurance
Did you know that according to the Department of health and human services about 70% of those over the age of 60 will need some type of long term care at some point in their lives? Did you know that women, who live longer on average than men, will need this type of care longer? While you could be among the 30% who never need long term care, you could potentially be among the 20% who need it for 5 years or longer.
Why Not Just Use Health Insurance?
Long term care is different from traditional insurance because it provides care over a longer stretch of time. General health insurance only covers limited types of long term care and long term care is not included in disability insurance.
What Does Long Term Care Insurance Cover?
Long term care provides a daily benefit to cover the cost of custodial care should you be unable to perform these activities on your own. Custodial care is care that supports the activities of daily living, such as bathing, dressing and eating. This care may be given in a variety of settings, including your home or some type of residential facility.
Traditional health insurance will continue to cover most aspects of medical care, but should an illness incapacitate you to the point where you cannot live on your own and support for activities of daily living, this would be covered by long term care insurance.
Cost Considerations - What Determines Cost?
Cost of long term care will vary based on a number of variables, including your age, and the amount of daily coverage you obtain.
Cost of long term care can be very high and erode the resources you have accumulated over your lifetime. Long term care insurance can protect against his. In addition as you age, you may not have the resources to cover this type of care with your own resource. Long term care insurance, purchased while younger, can provide you with an affordable option.
Key Considerations to Assess Your Need for Long Term Care Insurance
You should take into account several factors when considering long term care:
Your Age:
Not surprisingly, the older you are, the more likely it is that you will need long term care
Gender:
As mentioned above, women generally live longer than men and are more likely to need this type of care at some point and for a longer period of time
Chronic illness:
If you have a chronic illness that has the possibility of progressing toward a degree of disability you may be more likely to need this type of insurance
Current health and family history:
Consider the state of your health and your family history. This can inform your decision about what you need
Living arrangement:
Are you single and living alone? you may want to consider long term care insurance as you may have a greater chance of needing it than someone who is married, or living with a partner.