The
Need for Long Term Care Insurance
When
planning for your retired years, it is important to think
about your retirement and the activities that you would like
to pursue over the long haul. It is equally important
to consider the possibility that, at some time, you or a loved
one might require some type of long term assistance with ordinary
everyday activities that could be covered with a long term
care insurance policy. This is where the need for long
term care insurance arises for the elderly community.
Usually,
when people think of long term care insurance, they think
of insurance that will help pay for the costs associated with
nursing home assistance. However, long term care insurance
can cover much more than just long term nursing home assistance.
For example, long term care insurance can cover costs associated
with a health professional that will come to your home and
assist with routine activities of daily living. The
problem is that many people have limited financial resources,
preventing them from obtaining the type of assistance that
they need.
Where
the need arises
Long
term care insurance is much more than nursing home care.
Long term care insurance covers medical, personal, and social
services provided at home, or in a community program such
as an adult day care center or a nursing home.
If
an illness or disability made it impossible for you to carry
on as you do today, would you be prepared to get the help
you needed? Do you know how much long term health care
services cost? Do you know what protection Medicare
and your current private insurance coverage offer regarding
long term care?
Long
term care is distinguishable from acute care such as that
provided in a hospital. Long term care refers to the
level of care needed by people with chronic long term illnesses
or disabilities requiring continued support.
Private
long term care differs from the usual health insurance with
which most people are familiar. Long term care insurance
helps cover the costs of caring for the chronically ill.
Long term care insurance covers costs that would not be covered
by your health insurance plan. Private long term care
insurance is an excellent approach to cope with the high costs
of chronic long term illness that plagues over half of the
adults over age 65.
How
serious is the need?
Long
term care insurance has come to the aid of many individuals
who have the need for long term care. Long term health
care represents the primary catastrophic health care expense
today. Nearly one in every three people that are age
65 or older will need the assistance of long term care insurance.
For every person in a nursing home, another two or three people
in the community have at least the same, if not greater, need
for long term care insurance assistance.
The
nature of long term care services required may vary widely.
People may need help around the house, with shopping, or with
transportation. They may need personal long term health
care, or rehabilitative long term health care. For many
people the cost of receiving long term care services can reach
devastating proportions. The only way to avoid crisis
decision-making and to cope with exorbitant financial demands
is to purchase a long term care insurance policy.
Insurance
will help with the cost of long term care
Depending
on the level of assistance provided, the cost of long
term health care in a nursing home averages $30,000 to $50,000
a year, and can easily exceed $75,000 or even $100,000 depending
on location and the level of assistance which is required.
Half
of all nursing home expenses are paid directly by individuals
and their families. A recent study conducted by the
House Aging Committee found that approximately two-thirds
of single older people and one-third of couples were impoverished
after only 13 weeks of nursing home assistance.
Long
term health care provided at home is also costly. Home
health care provided by licensed professionals can range from
$10,000 per year for skilled nursing services to $120,000
per year for home health aides and other supportive services.
Understanding
the insurance coverage
Medicare
is not intended to cover chronic long term assistance with
ADL's. However, this type of assistance would be covered
under a long term care insurance policy. Medicare coverage
for long term care is limited and currently pays less than
two percent of the nations nursing home bills. Such
insurance policies generally cover only 100 days of skilled
nursing care if an individual meets specified criteria and
even then, there is a substantial co-payment. They rarely
cover custodial care, which is most commonly needed by those
with chronic long term illnesses and is provided with a long
term care insurance policy.
Medigap
or supplemental health insurance does not generally cover
additional services, but rather pays the costs Medicare does
not. Some insurance plans may pay for drugs or services
such as private duty nurses, but it is important to understand
the coverage and limitations of supplemental insurance policies.
Insurance
companies in the private sector have begun to respond to these
gaps in the financing system with long term care insurance
policies that can be tailored to an individuals specific long
term
health care needs. Long term
care insurance represents a response that is crucial to the
financial security of the elderly community. Therefore,
it is extremely important to protect yourself over the long
haul. Don't wait. Look into a long term care insurance
policy today! |
