Planning for Long-Term Care

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Planning for Long-Term Care

by | Nov 16, 2016

Americans are living longer, and that means a higher chance of requiring long term care.  Long-term care insurance can help you plan for the unexpected and protect your financial legacy.  

In light of November being Long-Term Care Awareness month, you can’t know for sure if you’ll need long term care or for how long, but you can plan for the possibility that you’ll one day need expensive long-term assistance if health problems result in a loss of independence.  Studies suggest that almost 70% of those over age 65 will need some type of long-term care for three years, and 20% will need care for more than five years.  More than two-thirds of those needing care will require nursing home services.  But Medicare does not cover long –term care and nursing home care averaged $82,125 a year in 2015.  A home health aide is expensive as well; in fact, hiring one can cost as much as $21 an hour, more than $500 a day for round the clock care.1

The chances of needing that level of care increase as we age.  Having a plan in place may help you feel more secure in retirement, offering peace of mind knowing you’re better able to manage your financial situation and access quality care, if and when you need it. 

What is Long-Term Care
Long-term care provides medical and personal care for people of all ages who can’t independently perform basic daily living activities, such as bathing, dressing, eating and getting around, due to illness, injury or cognitive disorder.  Care is available in a number of settings, including private homes, assisted living facilities, and adult daycare centers, hospices and nursing homes. 

Long-Term Care is available in three basic forms:

Skilled care: Continuous care, ordered by a physician, designed to treat a medical condition.  This care is performed by skilled medical personnel, such as registered nurses or professional therapists. 

Intermediate care: Intermittent nursing and rehabilitative care provided by skilled medical personnel under the supervision of a physician.

Custodial care: Personal care that’s often given by family caregivers, nurses aides or home health workers who provide assistance with activities of daily living. 

It makes sense to mitigate some of the financial risks through adequate long-term care insurance to avoid this potentially financially – and emotionally – devastating scenario


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