Aging often brings about a decline in our physical and cognitive abilities, influenced by chronic illnesses, disabilities, or age-related conditions such as dementia and arthritis. This decline can hinder the ability to carry out essential daily tasks like eating, bathing, or dressing without help. As a result, many older adults may need support from caregivers or assisted living facilities to sustain their quality of life. Unfortunately, the costs associated with long-term care can be quite high, making it unaffordable for many families. Long-term medical insurance can offer reassurance to seniors and their loved ones by helping to cover these expenses.
According to LongTermCare.gov, almost 70% of individuals who reach the age of 65 will require some form of long-term care. On average, women may need assistance for about 3.7 years, while men typically require it for around 2.2 years. It’s important to note that standard health insurance and Medicare do not cover long-term care; they only provide limited coverage for short nursing home stays or a small amount of home healthcare for rehabilitation. In most states, individuals must pay out-of-pocket for custodial care without long-term care insurance.
When considering long-term care insurance, several factors should be considered, including the daily benefit amount, the provider network, policy riders, and your current age. Working with an insurance agent can help consumers navigate these options and find a policy that aligns with their healthcare needs and budget.
Long-term care encompasses a variety of services and support aimed at assisting individuals who can no longer manage daily activities independently. While many individuals plan for retirement, they often focus solely on the amount needed for a comfortable lifestyle, overlooking the potential need for long-term care options like nursing homes or assisted living facilities, which can be significantly more costly than anticipated. These expenses can quickly deplete their savings and any intended inheritance for loved ones, or in the worst-case scenario, family members may be shouldering the financial burden. Furthermore, it’s important to note that standard health insurance and Medicare typically do not cover these expenses. Insurance for long-term care is designed to cover services that regular health insurance does not, including stays in nursing homes, assisted living, adult day care, or in-home care. This type of insurance can safeguard assets and alleviate financial pressure and caregiving responsibilities for family members. Long-term medical insurance plans reimburse policyholders a daily amount for services that assist them with activities of daily living.
What Does Long-Term Care Insurance Cover?
Medicare and Medicaid assist with certain medical expenses for older adults, but they often fall short when covering the costs associated with prolonged illness or disability. A long-term care insurance plan covers various medical and non-medical services for people with chronic illnesses or disabilities, like Alzheimer’s. These services are available in several settings, including homes, adult daycare centers, nursing homes, assisted living facilities, and hospice care.
This type of insurance can also cover:
Skilled nursing care
Occupational, speech, or physical therapy
Personal care assistance, such as help with bathing, dressing, and using the restroom
Laundry and housekeeping services
Home-delivered meals
A long-term care insurance policy is designed to cover the expenses related to care needed due to chronic illnesses, disabilities, or injuries. It also supports individuals needing assistance due to the natural aging process. Furthermore, it can help cover respite or temporary care, allowing primary caregivers a break, typically offering compensation for 14 to 21 days each year. Long-term care insurance focuses on covering custodial and personal care needs rather than just medical expenses.
How Much Does Long-Term Care Cost in the US?
Long-term care expenses can quickly drain personal savings or burden family members with financial responsibilities. In the United States, the average cost of long-term care varies based on the type of service, geographical location, and the level of care needed. As reported by Nerd Wallet, the typical annual cost for a semiprivate room in a nursing home is around $94,900.
Nursing homes represent the highest tier of long-term care for adults, making them suitable for individuals facing serious health challenges like dementia or significant mobility issues. These facilities prioritize disease management and medical care, including medication administration and chronic condition monitoring, contributing to their high costs. In contrast, assisted living caters to older adults who require some assistance with daily activities but do not need extensive medical attention, averaging $64,200 annually for a private one-bedroom unit. The average cost of an insurance plan for long-term care is $950 annually for a single male aged 44 with a $165,000 benefit or $1,500 for a single female of the same age. Other long-term care alternatives and their average yearly costs include:
Adult day health care: $24,700 per year
Homemaker services: $68,640 per year
Home health aide: $75,504 per year
Who Would Most Likely Need Long-Term Care Insurance?
Many individuals will require long-term care at some stage in their lives. However, accurately forecasting the amount or type of care needed can be quite challenging. According to the National Institute on Aging, the necessity for long-term care can sometimes emerge unexpectedly, such as following a heart attack or stroke. More frequently, though, the need for care develops as individuals age and may require increased assistance. This is especially true for those with serious, chronic illnesses or health conditions that deteriorate.
Those most likely to benefit from long-term care insurance are individuals nearing or already in retirement, particularly women, who tend to live longer and thus may need extended care compared to men. It is advisable to consider purchasing long-term care insurance between the ages of 50 and 65, as individuals in this age range are generally healthier and can secure lower premiums. Other significant factors indicating a potential need for long-term care include:
Having family members who faced major health challenges requiring long-term care.
Existing chronic conditions such as dementia, Parkinson’s disease, or mobility limitations.
A desire to safeguard assets against the high expenses associated with long-term care.
Contact HealthPlusLife for More Information on Long Term Medical Insurance
Millions of Americans need long-term care, which is projected to rise. As life expectancy increases, many individuals will require these services for extended periods, often leading to unexpected financial challenges. If you’re considering acquiring a long-term care insurance plan, HealthPlusLife is here to help you navigate the intricate options and find a policy tailored to your needs. We can assist you in planning for potential long-term care and determining the amount of insurance you require while considering your retirement income. One of our licensed insurance agents will gladly guide you and address any questions.
At HealthPlusLife, we aim to offer health insurance solutions that align with your needs and fit your budget. We also assist with various health and life insurance policies, ensuring peace of mind for you and your loved ones throughout your life and beyond. Contact us today at 888-828-5064 to discover more about long-term care insurance and begin securing your retirement plans.
Johanna Karlsson Johanna Karlsson is a veteran health and life insurance professional licensed in 50 states. She relocated from the countryside in the south of Sweden and has not looked back. After coming to the United States to attend university, she gained her degree in Public Relations. She brought her public relations skills to a local international health insurance where she discovered a new passion in insurance. After years with that company, Johanna now joins HealthPlusLife to help build a team of licensed insurance agents ready to meet your insurance needs.
