Long-Term Care

When it comes to long-term planning, the realist has an edge. No one wants to think about the prospect of his or her own failing health, but considering it now, in the short run, may make your future more comfortable and secure. One of the most important realities to face is that as people's longevity has increased over the latter half of the last century, so has the need for long-term care (LTC). While the services available for assistance, such as nursing homes, assisted living facilities (ALFs), adult day-care centers, and in-home care options, have expanded and improved to keep pace with the "graying of America," public programs and private health insurers have not necessarily adjusted to make long-term care a funding consideration.
 
The Real Need for Long-Term Care

Americans are living longer than ever before. And, according to government projections, this trend is expected to continue. Over the next 50 years, the age 85 and older population is expected to be the fastest growing segment of society. Unfortunately, along with aging, the chances of needing long-term care (LTC) increase. The primary reason for this is that the likelihood of chronic conditions grows with age.

Long-term care refers to a broad range of services that assist those with chronic conditions in performing the essential activities of daily life (ADLs), such as bathing, dressing, and eating. Long-term care can be quite costly.

Did you know that nursing home costs now average $72,000 per year and costs are continuing to rise? (AARP, 2007) As a result of these high costs, an extended nursing home stay could quickly ravage your income and savings. Because of this widespread need and drastic increase in the cost of nursing home care, long-term care insurance (LTC) has become a popular method for easing the potential financial burden.

 
Funding Realities

No public program—neither Medicare nor Medicaid—is specifically designed to fund long-term care. While many people mistakenly assume Medicare will cover the costs, it actually only covers short-term care. Medigap—private health insurance intended to supplement Medicare—also generally does not pay for costs associated with long-term care. As a result, Medicaid has become, by default, the primary funding source, but an individual must be in a position of financial need to receive assistance.
 
A Real Alternative

An increasingly popular insurance alternative has emerged to alleviate the strain long-term care may place on your savings and younger generations- long-term care insurance. Long-term care insurance can help pay for long-term care expenses before you or a loved one become eligible for Medicaid, and it may allow you to keep significantly more of your savings. A policy tailored for your needs may assume the costs of a nursing home, an assisted living facility, adult day care, and/or care in the home. In addition, participation in certain policies makes you eligible for tax deductions. Thinking about it in the short run may save you in the long run.
 
Long-term care insurance is a realistic approach that may enable you to maintain your quality of life, while offering you, or a loved one, financial independence and increased options for care.

To learn more about long-term care and what we can do for you contact us.