Senior Care Plus

Long Term Care - FAQ's & Tips

  • What is long term care?

    It is the type of care provided for those who have an illness, disability, or cognitive impairment, and need assistance with activities of daily living activities.

    LTC may include a need for home health care, adult day care, or a confinement in an  assisted living facility or a nursing home.

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  • Where Is Long Term Care Provided?

    •Nursing Home Care

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  • What Is the Effect of Inflation on Long Term Care Costs?

    (using a 5% compound inflation rate)

    Estimated
    Annual Cost    		Year 10Year 20
    $40,000$62,053$101,078
    $50,000$77,566$126,347
    $60,000$93,079$151,617
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  • What Are The Chances of Needing Long Term Care?

    The Risk Is Overwhelming:

    The actual risk of needing Long Term Care, either at Home or in a Facility, is greater than 50%.

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  • What Is the Cost of Long Term Care?

    Currently, the average annual cost in the United States for comprehensive home health care is about $38,000* and an average stay in a nursing facility is more than $50,000.**
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  • Who Provides Long Term Care at Home?

    Traditionally, long term care has been provided by a family member.  However, most of these caregivers are now part of the workforce, and as a result face conflicting demands on their time and financial resources.
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  • What About Major Medical or Disability Income?

    Major Medical

    Traditional medical insurance normally excludes custodial care, long term confinement in a nursing home, and home care. Most employees are unaware of this risk.

    Disability Income

    Disability income is intended to replace a portion of the employee’s paycheck. Most often, this amount will scarcely meet existing financial obligations, leaving nothing to address the added costs of long term care.  

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  • What About Medicare and Medicaid?

    Medicare

    Medicare and Medicare Supplement Insurance usually will not pay for long term care.

    Medicaid

    To be eligible for Medicaid, individuals must spend down their own resources until they become eligible for welfare programs.

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  • Who Pays for Long Term Care?

    Unfortunately, most long term care expenses are paid for out of people’s pockets, out of the savings they are accumulating or have accumulated to enjoy their retirement.

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  • Why Are People Purchasing Individual Long Term Care Policies?

    • To protect their assets
    • To protect thier spouse's standard of living
    • To maintain their freedom of choice
    • To avoid being a burden on family and friends

    “…So this insurance is so much more than financial.  It is giving families the money and lifestyle to keep their dignity. And you can’t put a price on dignity.”*
     *The Wall Street Journal, Helping Hands, Glenn Ruffenach, quoting Phyllis Shelton, October 22, 2001.

    The financial costs of long term care present what may be employees’ greatest financial risk, particularly during retirement years.

    Traditional medical insurance normally excludes such care, which is important for working age employees.  For retirement planning, it should be noted that Medicare is not structured to pay for most long term care costs.

    Long term care insurance is surprisingly affordable when made available through sponsored groups.

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