Long Term Care
Regal Group, Inc. wants to help you protect your future with the right life insurance plan.
What is Long Term Care Insurance?
As we age, the likelihood we will need some type of medical or personal care increases. We may need long term care - a variety of services which help meet the medical and non-medical needs of people with a chronic illness or disability who cannot care for themselves for long periods of time. Such services typically include assistance with normal daily tasks like dressing, bathing, and using the bathroom. Long-term care can be provided at home, in the community, in assisted living facilities or in nursing homes
On average the need for long term care services lasts months or years, not weeks or months, and can be very expensive. The costs of long term care on average exceed $50,000 per year (www.longtermcare.gov) and generally speaking, Medicare, Medicare supplement insurance and basic medical insurance plans do not cover the cost.
Long term care insurance was developed for precisely this reason – to provide the needed financial protection against the cost of long term care that other plans simply don’t cover. If you need long-term care services, what financial resources could you call on? Do you have the necessary savings to pay for home health care for six months, a year or longer without the expense being a burden on your lifestyle? If not, long-term care insurance may be a good option for you to explore.
The Time for Long Term Planning
We won’t admit it but NOW is the time to start planning for our long term care needs. Planning ahead is important because 70% of people turning age 65 can expect to use some form of long-term care during their lives. And, most likely the older you get the greater the chance you will need long term care.
Why is planning ahead for long term care so
important? Consider the following:
Not relying on children or family with care giving responsibilities
Protecting your retirement assets
Ensuring that critical choices remain yours
It’s important to plan ahead because the cost of services often exceeds what you can afford to pay from your income and other investments. With planning, there is a greater likelihood that you will be able to leave an estate to your heirs, because you are less likely to use up your nest egg.
With long term care planning you are helping to reduce the emotional and financial stress on you and your family. It gives you and your family peace of mind.
Most importantly, you want to stay in your home
If you will need care, planning will help ensure your greater independence should you need care. Your choices for receiving care outside of a nursing facility and being able to stay at home or receive community-based services are greater if you plan ahead.
Don’t Delay!
There are a number of reasons many people don’t plan ahead. Maybe you think, that even as you age, you won’t be dependent on others or need assistance. Or, maybe you think you have time to buy long term care insurance. Keep in mind, the older you get the more expensive long term care insurance becomes.
How Much Insurance is Enough?
When it comes to insurance there isn't a one-size fits all approach. This is especially true when it comes to long-term care insurance.
When thinking about your long-term care insurance policy, it is important to take the following into consideration
Protecting Your Assets
Long term care insurance should be a factor in your overall retirement planning. Because needs, resources and personal situations differ, it's important to discuss your situation with a trusted advisor.
Current Long Term Care Costs
Whether you plan to move to a warmer climate or closer to your family, the cost of care varies by state and by region. Where you retire is an important factor in determining the amount of coverage you will need.
Here are some national average costs for long-term care in the United States (in 2016).
$225 a day or $6,844 per month for a semi-private room in a nursing home
$253 a day or $7,698 per month for a private room in a nursing home
$119 a day or $3,628 per month for care in an assisted living facility (for a one-bedroom unit)
$20.50 an hour for a health aide
$20 an hour for homemaker services
$68 per day for services in an adult day health care center
Remember, the cost of long-term care depends on the type and duration of care you need, the provider you use, and where you live.
How Much Care Will You Need
The duration and level of long-term care will vary from person to person and often change over time. Here are some statistics to take into account:
Someone turning age 65 today has almost a 70% chance of needing some type of long-term care services and supports in their remaining years.
Women need care longer (3.7 years) than men (2.2 years).
One-third of today’s 65 year-olds may never need long-term care support, but 20 percent will need it for longer than 5 years.
As you can see there are many issues surrounding buying long term care insurance. We know you have questions so give us a call and let's sort them out.
When to Enroll
Enrollment for life insurance can vary depending on the type of policy and the provider. Here are the common scenarios:
Employer-Provided Life Insurance: This insurance is often offered as part of a benefits package, with enrollment typically occurring during the employer’s enrollment period. Some plans allow enrollment upon hiring or during a qualifying life event (i.e., marriage, birth of a child).
Guaranteed Issue Policies: These policies do not require a medical exam and are often available year-round. However, they may have higher premiums and lower coverage limits.
Individual Life Insurance: You can apply for individual policies at any time, though acceptance and premiums depend on factors like age, health, and lifestyle. To secure lower premiums, it’s generally advised to enroll when you’re younger and healthier.
Special Enrollment Opportunities: Some providers or circumstances, such as group policies through associations, may offer limited-time enrollment windows.
Understanding these options ensures you don’t miss the chance to secure the right coverage for your needs.