Long-term care (LTC) insurance is defined as coverage available on an individual or group basis to provide medical and other services to patients who need constant care in their own home or in a nursing home.
Although people are generally living longer, many are requiring assistance in their later years. Long Term Care services can be provided in your home, in an assisted living facility or in a nursing home. In many cases the family is no longer able to provide such care around the clock. Family members may not live nearby, they may have other pressing family commitments, or simply cannot get the time off work or away from the home.
It is very likely that someone you know needs help with the activities that many of us take for granted while we are still able to perform them - eating, bathing, dressing, etc. According to the Health Insurance Association of America, 48.6% of people age 65 and older may spend some time in a nursing home and 71.8% of people age 65 and older may use some form of home health care. Additionally, less than 2% of nursing home costs are paid by Medicare with the national average nursing home cost somewhere in the neighborhood of $50,000 per year.
The greatest difficulty with Long Term Care is the lack of preparation for the costs incurred when someone you love requires assistance. Some people can pay the bill out of pocket, others will qualify for Medicaid (welfare), but most of us will fall somewhere in the middle. We have worked hard all our lives and now we can lose everything to a nursing home.
A Long Term Care Insurance Policy can help protect your assets from the rising cost of care, allowing you to remain financially and socially independent. Long Term Care can help secure not only your financial future, but also that of your loved ones.