Guest Blog: What is Long Term Care?

By October 30, 2013Care Planning

 

Today’s LivHOME guest blog comes from Stan Isreal of Stan Isreal Insurance Services.  Stan and their website’s goal is to help you better understand Long-Term Care and Long-Term Care Insurance and how Long-Term Care Insurance can help you protect your hard-earned assets.

Here’s Stan!

Long term care refers is a wide range of personal. Supportive, medical and social services for individuals, who because of illness, accidents or disabilities due to growing old need special assistance with their normal daily activities, such as bathing, dressing and toileting. Care can be provided in one’s own home, an assisted living facility or in a nursing home. Research shows us that 70% or people over age 65 will need these services.

Who pays for long term care?

  1. Medi-Cal pays 65%
  2. Medicare pays 12%
  3. Long Term Care pays 2%

What does long term care cost?

The median cost of a private room in a California Nursing home is $268 per day or $97,800 per year.

The median cost of an Assisted Living Facility is $44, 000 per year.

Homemaker services average $50,000 per year.

What is long term care insurance?

LTCI policies are legal contracts that specify when, how and under what circumstances a policy will pay benefits for long term care services. Purchasers select benefits and other features when they apply for coverage.  Those choices combined with age and health factors, determine the premiums they pay:

  1. Applicants choose the dollar amount they want the company to pay for each day of care.
  2. Applicants choose the number of years they want the company to pay once benefits begin.
  3. Applicants select where they want the policy to pay benefits.
  4. Applicants select the number of days they are willing to pay for their own care (deductible)
  5. Applicants choose whether or not to have inflation protection.

What does long term care insurance cost?

Take advantage of age and health. The earlier LTCI is purchased the more affordable the options are. The cost of the coverage is dependent on how much coverage is purchased. The most important thing is to put some level of protection in place rather than ignoring the risk.

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