November is Long Term Care Awareness month, which makes it a great time to prepare for the future, and for the possibility that one day care might be needed for ourselves or our loved ones. Long Term Care is the care provided to an individual who can no longer perform the activities of daily living by themselves. While it is common for people to think that they’re healthy and won’t need long term care in the future, the reality is that many of us will need some type of care.
Who pays for Long Term Care?
The common misunderstanding is that when you need long term care assistance, the costs will be covered by your health insurance, Medicare, or Medicaid. Health Insurance and Medicare both only cover a very limited portion of a nursing home stay, and with many conditions you’ll have to meet. Less than 5% of nursing home income is derived from Medicare. These two policies also don’t cover any costs for a nursing aide, unless they are providing rehabilitation services. Medicaid will pay for a larger portion of long term care services, but you must meet minimum income eligibility requirements first.
About 70% of people over age 65 can expect to need some form of long term care. Only a long term care insurance policy will pay for services needed for day to day assistance that you’ll need when you are not able to take care of yourself. The benefits can be used for care in your home or care in a facility.
Greenberg, Wexler and Eig, LLC offers several solutions to long term care insurance. Policy types include traditional long term care insurance, hybrid long term care/life insurance policies, and Universal Life insurance policies that include a LTC rider. Please contact us if you would like to further discuss which type of policy would be the best fit for you.
By: Sarah Quinn