What is Long-Term Care (LTC) Insurance?
Long-term care insurance is a valuable financial tool designed to help you cover the costs associated with long-term care services, which become necessary when you are no longer able to perform basic activities of daily living (ADLs) independently. These activities include bathing, continence, dressing, eating, toileting, and transferring.
Long-term care insurance policies provide coverage for a range of services and support, including assistance at home or in a nursing home or assisted living facility. By purchasing a long-term care insurance policy, you can help protect your savings and assets from being depleted by the high costs of long-term care services.
Long-Term Care is a Real Threat to Your Retirement
The high cost of LTC expenses can deplete a family’s life savings, leading to financial hardship. With over 30 years of experience, we can help you customize a plan to address this exposure.
70% of people who are over 65 today will require long-term care according to the US Dept. of Health & Human Services.
The average cost of long-term care could soar to over $100,000 a year, according a 2021 Genworth survey.
You can use Genworth's Cost of Care calculator to estimate LTC costs by the day, month, or year.
Who needs LTC insurance?
Long-term care insurance is for individuals who prefer to remain in their homes for as long as possible while safeguarding their retirement savings. This type of insurance is particularly beneficial because Medicare typically does not cover the full range of expenses associated with assisted care, including custodial care provided in nursing homes, assisted living facilities, or at home. By having coverage for these types of health expenses, individuals can maintain control over where they receive care and protect their life savings from being depleted.
How does LTC insurance work?
Long-term care insurance transfers the risk from you and covers the costs of various long-term care services if you are unable to perform basic activities of daily living (ADLs), and/or have a cognitive impairment.
Long-term care insurance provides financial protection and peace of mind by reimbursing you for these expensive costs. By selecting the appropriate coverage options and benefits, you can tailor your policy to meet your unique care needs and preferences.
How is the cost of LTC insurance determined?
The cost of long-term care insurance is determined by several factors, including:
Health Status
Age & Gender
Monthly Benefit Amount
Length of Coverage
Inflation Coverage
Elimination Period
It's important to note that the cost of long-term care insurance can vary significantly between individuals based on these factors. Generally, the best time to apply for long-term care insurance is when you are younger and in good health, as premiums tend to be lower and you are more likely to qualify for coverage. Waiting until you are older or have health issues may result in higher premiums or difficulty obtaining coverage.