Long-Term Care Insurance

In 2019, the life expectancy for the U.S. was 78.87 years. Many folks are living well past this age, which means that retirement plans should last longer. A big concern for seniors and their loved ones is how to pay for long-term care. One way to do this is through long-term care insurance.

What Is Long-Term Care Insurance?

Long-term care (LTC) insurance pays for help with simple activities like bathing, eating, and dressing. It covers expenses that Medicare and health insurance don’t pay for.

Despite what your presumptions may be, long-term care needs aren’t restricted to senior citizens. Approximately 37% of long-term care services are given to people under 65.

How Does It Work?

You would purchase long-term care insurance through an insurance agent, like the ones at Turning 65 Solutions. You choose the amount of benefit, how long you want it to cover, and when you want it to begin.

You will be asked for some lifestyle and medical information. LTC insurance could be more expensive or unavailable if you have particular health conditions. The insurer will pay a benefit if you can’t perform two of the six daily living activities (eating, bathing, toileting, dressing, transferring, continence) by yourself, or you’re diagnosed with a cognitive disorder.

What Does Long-Term Care Insurance Cover?

LTC insurance covers care in your home, at adult daycare, at a nursing home, or at an assisted living facility. You’ll have to submit a doctor’s report and a plan of care.

Why Purchase Long-Term Care Insurance?

It’s likely that you’ll need long-term care in some way, shape, or form. Half of people who are 65 today will require some method of long-term care. No matter the type of service, long-term care is very expensive. The national average for adult day care is $2,040 per month. Even if you just needed part-time help from an authorized homemaker service, it will still cost $30,000 per year. For most folks, long-term care is a pretty heavy blow to their retirement plan. 

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Types of Long-Term Care Insurance

Traditional LTC insurance plans pay a benefit for long-term care services. The insurer can increase premiums under certain conditions, and there’s no refund of premiums for leftover benefits. Traditional long-term care premiums are tax deductible. 

Hybrid LTC insurance plans are life insurance policies that feature a long-term care benefit. When you purchase the life insurance policy, a long-term care benefit is associated with the death benefit. You can pay for the insurance annually or in a grand total. What you use for long-term care is deducted from the death benefit when you pass away.

Medicare and Long-Term Care

Medicare will partially pay for stays of under 100 days while you’re getting skilled care. After 100 days, Medicare won’t pay any benefits.

What Does Long-Term Care Insurance Cost?

LTC insurance premiums are influenced by your age, gender, and health. Traditional policies are cheaper than hybrids. For more about LTC insurance costs, contact Turning 65 Solutions.

How Much Insurance Do You Need?

You know that long-term care should be included in your financial plan, but how much insurance do you need?

When you plan ahead, consider the following:

  1. Budget – How much can you afford to pay for LTC insurance?
  2. Assets – How long could you fund long-term care without compromising your retirement plan?
  3. Legacy plan – How much do you want to leave to your beneficiaries?
  4. Where you retire – Costs for long-term care vary depending on where you live.
Contact Turning 65 Solutions About LTC Insurance

Long-term care insurance helps you plan for the future and protect your retirement. There are many things to know about the coverage, and Turning 65 Solutions can clarify the process for you. Plus, we’ll work extensively to find you the best coverage.

Call 800-515-4031 to request a quote!