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.
An insurance policy, based on your need for care, will pay a daily or monthly benefit amount to cover some or all of your long term care costs. Some policies will pay benefits for up to a stated period of time such as three or four years while others pay until a maximum dollar amount has been paid, such as $150,000. Most policies have options for your daily or monthly and policy maximum benefits to automatically increase every year so that your coverage keeps pace with rising health care costs.
It’s never too early to consider long-term care insurance because:
- The younger you are when you buy long term care insurance the less it cost.
- Once you have the coverage, it is Guaranteed Renewable for life – it cannot be cancelled. Conversely, once you become too unhealthy to obtain it, you are unlikely to ever be healthy enough to qualify again.
If you are 45 or older and do not have coverage in place, I encourage you to learn more now. For more information including a personalized quote, please contact me.
Why The Blue Thong Society Wants You To Plan For Your Long Term Care
We know the last thing you need is something else to worry about. With caring for children, a career, community involvement, and keeping your home and life going, you’re already busy enough. But our nation has a crisis coming and it’s going to affect you and your family deeply.
The US Census projects that by 2030, one out of every five Americans will be a senior citizen. Already almost half of the US workforce – those of us in our 40’s, 50’s, and 60’s – are caring for an elderly parent. 3 out of 4 of us will need long term care at some point in our lives. And this doesn’t just affect the elderly – 40% of those in need of long term care are between the ages of 18 and 65.
I already know what you’re thinking…
Won’t the government take care of us if we need care?
I’m afraid the government isn’t going to do much. Medicare does not provide much coverage for long-term care in most medical situations. In some cases they may provide a few weeks of skilled care at your home, or in a nursing home. But after that, it’s up to you.
In fact, our government has recognized the coming crisis and has launched a campaign urging people to create a plan.
If you happen to have saved hard and become wealthy, you may have enough money to purchase the private care you need. But the vast majority of us, regular middle-class America, are severely underinsured. In other words, we’re heading for trouble.
So why is long term care a woman’s issue?
Research has shown that women bear the brunt of care costs. Women generally live longer than men, and because of this, require lengthier care as they age. And because women are often the caretakers of their family’s health and welfare, the responsibility for caring for elderly parents, an ill spouse, or disabled siblings falls on us. Long term care insurance provides the assistance you and those you care for deserve.
It’s critical that you develop a plan now that considers all of your options.
Long term care includes a wide range of products and services, from home health care, hospice care, medical equipment, to home-delivered meals and more. You should also consider your finances. Many people who believe that they can self-insure for the risk are not taking into account the risk of disability in the early part of their lives. An early disability can wipe out even a considerable fortune, and with the cost of care growing exponentially, even a disability when you are older could cost hundreds of thousands of dollars.
It’s time to talk about the problem.
This is an important issue for us at the Blue Thong Society. We urge you to review your situation with the Blue Thong Society’s long term care specialist to learn about the latest options available in the rapidly changing long-term care insurance industry. Remember that planning for long-term care is just another part of a continuous lifelong financial plan. Long-term care planning is an issue for everyone. Having no plan is simply not a good long-term strategy.
Long Term Care is a Women’s Issue!
- Women are more likely to need long term care. About 79% of 65 years old women will need it during their lifetime.
- Women live longer. More than two-thirds of Americans over the age of 85 are women
- Many Women aren't adequately planning for their future. Many boomers - even those close to retirement - don't know how much income they'll need or what costs they'll need to cover.
- Long term care is expensive. The 2015 national average costs are $45,760 for home health aides, $43,200 for assisted living and $80,300 for a nursing home.
- Women often have fewer resources. Women are hit hard by changes in their finances caused by caregiving, divorce, widowhood. Almost half of women over age 75 live alone.
The Blue Thong Society has negotiated a discounted insurance program for its members and their spouses.
Take the first step and start thinking about what your long term care plan will look like?
Get expert advice from a specialist