Long-Term Care Insurance

Americans are living longer. As the population gets older, healthcare costs are growing as demand for medical care increases. At some point in your life, you may need ongoing medical attention if you have a disability or extended illness that requires long term care and causes you to lose income. Nursing homes, assisted living facilities, and in-home care can be necessary expenses, and they are not covered by standard health insurance. If you need these services, long term care insurance helps to cover your costs.

Long term care insurance can provide compensation when you or a family member is rehabilitating after an accident or severe illness, or for an elderly family member with age-related care needs.

What Is Long Term Care Insurance?

Long term care insurance, sometimes referred to as LTC insurance, is a type of health coverage that can help you cover your future costs if you ever need assistance or care due to an accident, injury, illness or age-related health issue. For example, long term care insurance can help you pay for an extended need for:
• Nursing home care
• An assisted living facility
• At-home care
• Rehabilitation and occupational therapy

Standard health insurance does not cover these services. Without ample savings, many people have a difficult time managing the out-of-pocket expenses of extended care.

Long term care is often considered an important coverage for people headed into their later years to cover potential costs such as nursing care or dementia care. However, this coverage can help anyone who is severely injured or develops a chronic condition and needs long term care. It provides a wide range of assistance for people living with disabilities, including help with daily activities, medication management and rehabilitation.

When Is the Best Time to Buy Long Term Care Insurance?

You can purchase a policy at any time, though most people choose to purchase this insurance when they are relatively young. You are much more likely to be accepted as a young person than later in life or after you develop health complications. For example, many people choose to buy long term care coverage in their late-40’s to mid-50’s, long before they anticipate needing care.

According to the American Association for Long Term Care Insurance, you have a 1 in 7 chance of being turned down for long term care insurance in your 50’s, and a 1 in 4 chance of being turned down in your 60’s.

People often choose to buy long term care coverage before they are statistically likely to need it because it can offer financial protection for a wide range of care needs. For example, long term care insurance can cover your care costs if:
• You have a car accident and need in-home medical care for an extended period
• You need daily assistance due to cognitive impairment, such as a stroke or dementia
• You need to move to an assisted living home due to a physical or mental disability
• You develop a chronic condition such as Parkinson’s Disease or multiple sclerosis

As you begin to consider preparing documents like a living will and life insurance, one of the questions that you may ask is, “Do I need long term care insurance?” This is a good time to visit with an Insurance Station agent who can help to assess your needs.