Long term care is what people need when they are unable to care for themselves because of a prolonged illness, disability or frailty. Long term care services can be as simple as help with daily activities like dressing or bathing in the home, or as specialized as skilled nursing care in a nursing home.
Your likelihood of needing long term care increases as you get older, if you live alone, or if you're a woman. Your family and individual medical history also play a major role in determining whether or not you will need long term care.
General population statistics are very informative. One half of all women and one third of all men reaching age 65 will enter a nursing home at some point in their lives. Even more will require some kind of in-home care or assistance. Of those entering a nursing home, many will only need short stays for rehabilitation, while 25% will remain over a year.
Long term care services are expensive. In-home services can easily add up to $1,000 a month. In 2003, the nationwide average cost for a nursing home was $40,000 to $50,000 a year and in Kansas an average of $36,500 or $100 per day. These figures increase with inflation. The average length of stay in a nursing home in Kansas is three years.
Medicare was not designed to pay for long term care. Strict criteria must be met to qualify for Medicare coverage for this type of care. Even when you meet Medicare's criteria, the coverage it provides is for a limited length of time for nursing home or home health services. Those who believe Medicare will pay their long term care expenses may end up unexpectedly spending their life savings on long term care costs.
You can, but Medicaid is only available if you meet income and asset limits. That means a single person will have to spend down his or her life savings to $2,000 before Medicaid will assist with long term care costs. Also, Medicaid funding for in-home care may be limited.
A properly selected long term care insurance policy may allow you to protect your life savings and assets from depletion if long term care is needed.
When Medicaid pays for a married person's nursing home care, the spouse remaining in the community is allowed to keep only a portion of the couple's assets.
Long term care insurance policies can cover a variety of services to meet your needs. It is important that you shop for a policy that honors your preferences.
These services may include:
Relief for your caregiver, who may be your spouse or adult child; Attendant care to help with bathing, dressing and other daily living activities; and Assisted living or nursing home care.
There are a wide range of premiums for long term care insurance. What you pay in a premium may depend on a number of factors including: age, elimination period, benefits, health status, and history, deductible periods, and other optional features you may add to your coverage.
You can lower your premiums by purchasing your policy at an early age, when you are healthy, and by carefully selecting the benefits and features that are right for you.
You are never too young to prepare for retirement. The more planning and investing you do, the better your quality of life may be in your retirement years.
Things to consider when shopping for long term insurance:
For additional information on Long Term Care Insurance, contact:
Other web sites that may be helpful as you plan for your future are: