More about Long Term Care

What is Long-Term Care?

Long-term care insurance represents one way you can live life on your own terms. It refers to care provided to you in your own home, in a nursing home or other residential setting. It can range from help with routine daily activities like bathing or around-the-clock care by skilled medical personnel. Although most long-term care services are used by older people, a young or middle-aged person who has been in an accident or suffered a debilitating illness may also require long-term care.

How much and for how long will long term care insurance pay?

Long Term Care Insurance is designed to reimburse you for expenses incurred while receiving health care services.

The Long Term Care Insurance policies express the benefits in terms of a Daily Benefit. For example, $100 per day or $150 per day, etc. Coverage can be purchased with benefits ranging from $40 to $250 per day.

Long Term Care Insurance policies offer options which can start benefit payments immediately upon qualifying, or take effect after a waiting period of up to one year.

Who needs long term care insurance?

Long Term Care Insurance is a contract which guarantees to pay for a sudden unexpected, large continuing expense which would seriously deplete or exhaust your financial resources. It is very much like homeowners or automobile insurance. If you were to lose either of these assets without the financial means to replace them or incur financial liability from acts beyond your control, it would probably create great financial hardship on you or your family or completely wipe you out.

Long Term Care Insurance guarantees a flow of money to pay expenses incurred for convalescent care and protects your assets from being completely spent.

Financial Advisors tell us that if a person has income-producing assets of $500,000 or more, then you probably don't need long term care insurance. The investment income from your assets should be sufficient to pay for long term care without invading the principal.

Conversely, if your liquid assets are under $100,000, it might be difficult to afford Long Term Care insurance. Government programs such as Medicaid will pay for minimal long term care coverage for those with little or no assets.

Consequently, if your liquid assets fall between $100,00 and $500,000, you should consider the purchase of Long Term Care Insurance just as one would purchase insurance to cover a home or automobile.

How costly are Long-Term Care Services?

Today, the national average cost of nursing home care is about $50,000, or $137 per day for total costs, including room and board, drugs and medical supplies. Home care averages more than $12,000 per year. In some areas of the country, these costs are much higher.

If no provisions have been made to pay for these high expenses, the results could be devastating. Since premiums can increase with age, the cost of waiting to purchase coverage can be very high. As a result, there is no better time than the present to plan for long-term care. One lengthy period of long-term care could wipe out everything you´ve worked a lifetime to build.

How will you pay for Long-Term Care?

• Personal assets:
  This option is available to those who have the income and assets to pay for long-term care without seriously affecting their financial well-being or independence.
• Family:
  There may be a chance that your family will have an extra $50,000 per year to spend on your care and special needs. Most families, however, will not have the ability to cover out-of-pocket long-term care costs.
• Government assistance:
  Neither Medicare, nor Medicare supplemental insurance, were designed to pay for long-term care expenses.
  Medicaid is designed to assist individuals with few personal assets and limited financial resources. To qualify, you may be forced to exhaust your personal assets and meet federal poverty guidelines before your care is covered. Choices for the care you receive may also be limited.
• Long-term care insurance:
  Long-term care insurance is one of the best ways to protect you and your family in the event you face the overwhelming expense of care in the future. Long-term care insurance helps you maintain your quality of life and independence, as well as peace of mind.

Why Our Long Term Care

• Personalized Plans:
  Design a plan to suit your individual needs. You have your choice of Home and Community Based Care, Nursing Care, or a policy that combines both.
• Inflation Protection
  Increase your benefits by 5% compounded annually.
• Flexible Payment Options:
  Tailor a schedule of premium payments that suits your financial situation.
• Tax-Qualified Premiums and Benefits
  May be tax-deductible, and qualified benefits are received tax-free.
• Up to 50% Discount for Joint Policies:
  Available to any two people living (need not be married) in the same household.
• Restoration of Benefits:
  Our policy provides that the policy benefits will be restored to its original, full amount within 180 days after the insured has recovered from a stay in a nursing facility.
• Bed Reservation Benefits:
  Our policy provides for 21 days per calender year.

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