Long term care insurance helps offset costs for prolonged medical services and provides peace of mind for families. 52% of people turning 65 will require some type of long term care services at some point in their lifetime, according to studies by AARP. The average need of that care is approximately 2 years. With health care costs rising, this insurance coverage is a helpful tool to combat those costs in the future.
What is long term care insurance?
Long term care insurance (LTCI) provides coverage for long term medical services, if you are unable to take care of yourself due to a disability or chronic condition. This coverage helps pay for nursing home care, home health care, or assisted living.
Do I need LTCI?
Many families experience long term care expenses with loved ones as they get older and their health declines. Nursing home expenses that cost $12,000 per month 20 years ago could cost well over $250,000 per year today. It is a general recommendation to insure against a catastrophic event, rather than shorter claims (ranging from 3-12 months). If structured properly, LTCI provides tremendous relief and flexibility. It also can help families navigate a challenging health event.
This coverage provides choice, control, and dignity for families facing a diagnosis, followed by a “plan of care.” With family members spread out across the country, it can be challenging to move loved ones efficiently and effectively. Additionally, most family members experiencing a care event would prefer to stay in their own home or hometown, where their support system is familiar. LTCI can help coordinate these plans and reduce family stress associated with such a significant life event.
What is the cost of LTCI?
The cost of long term care can range from $8,000 to $33,000 per month. Insurance coverage helps insulate families from the rapid erosion of their savings. Decades of savings can be consumed within just a few years, especially when dealing with debilitating health issues such as Parkinson’s, Dementia, or Alzheimer’s. These are long term illnesses that can span a decade of longer, requiring intensive care over time.
At Evarts Tremaine, we work closely with trusted advisors at Dickenson & Associates, who specialize in long term care insurance. We encourage our clients to explore the value of planning for long term care with a trusted advisor. If you have questions, please contact our office.