As you age, your chances of needing long-term care increase. For seniors, this care can range from help with simple tasks like bathing and dressing to assistance with more complex medical care, such as long-term illnesses or mental health conditions like Alzheimer’s disease. Many adults need long-term care, but planning for it is often neglected. Long-term care insurance can help adults get the care they need without costing too much or putting too much stress on their families. Understanding why they need long-term care coverage early on can help people make better choices about their health, wealth, and future well-being.
The need for long-term care is increasing
People who want to live longer need more long-term care. According to the U.S. Department of Health and Human Services, nearly 70 percent of people over the age of 65 will need some form of long-term care at some point in their lives. Different people need different types of long-term care, from personal care for activities of daily living (ADLs) to specialized nursing care in a facility. Older adults are more likely to need ongoing care because they live longer and are more likely to get sick or disabled. If you don’t plan ahead, the cost of long-term care can be high.
How do I get long-term care insurance?
One type of insurance that helps pay for long-term care is long-term care insurance. This insurance is different from regular health insurance and Medicare. People can receive these services in many places, including nursing homes, assisted living facilities, adult day care centers, and even in their own homes. Long-term care insurance can help pay for personal care, home care, and specialized nursing care, for example. If your policy allows it, it can also cover short-term care from a home health care provider, home modifications to make your home more accessible, and other related services.
Long-term care insurance helps people with disabilities or chronic illnesses who need ongoing care. This is different from regular health insurance, which typically covers emergency care or short-term medical care. With so many different types of policies available, it’s important to choose one that fits your needs and preferences.
Why Seniors Need to Plan for Long-Term Care
It’s critical to plan for long-term care early for a number of reasons. Long-term care is expensive and can drain your retirement savings and other assets if you don’t have the right insurance or savings. Here’s why adults should plan for long-term care in advance:
1. Long-Term Care Costs Are Rising
Providing long-term care requires a significant investment, and as the population ages, those costs are only likely to rise. According to Genworth’s 2020 Cost of Care Survey, the average annual cost of nursing home care for a single room is more than $100,000, while the annual cost of home care can be more than $50,000. Many people without long-term care insurance are left to rely on their savings, which can quickly run out. For those who don’t have enough savings to cover these costs, Medicaid may be the only option. However, the strict eligibility requirements mean that seniors may have to use all of their savings and assets to qualify.
2. Long-Term Care Is Not Covered by Medicare
Medicare covers some of the cost of senior health insurance, but not all of the cost of long-term care. Medicare covers short-term, skilled nursing care after a hospital stay, but it does not cover long-term care in a nursing home or assisted living facility. Medicare also does not cover personal care services, such as bathing, dressing, or transferring. Long-term care insurance can be a solution in these situations, as it fills the gap created by Medicare and ensures that adults do not have to pay for the costs themselves.
3. Protect Family Members from Excessive Financial Burden
Family members often have to pay for a senior’s long-term care. Sometimes they have to provide the care themselves or help pay for the services. Caregivers may have to adjust their work schedule, help out daily, or find a way to get professional care. This can cause tremendous emotional and financial stress for the people who care for them. Long-term care insurance can help alleviate this stress by covering the cost of care and allowing family members to focus on being emotionally present with their loved ones.
4. The likelihood of being approved for coverage.
Many long-term care insurance plans also cover medical screenings. This means that if you already have a health condition, you may not be able to get insurance or your premiums may go up. By planning ahead, you can avoid these issues and find cheaper ways to get care in the future.
5. Get Insurance and Peace of Mind
One of the best benefits of long-term care insurance is the peace of mind it gives you. Living comfortably means knowing that your long-term care needs are covered. If you need help, you’ll have the money to get the care you need. Plus, it can give your loved ones peace of mind knowing that they don’t have to pay for all of their care themselves.
Different Types of Long-Term Care Insurance
There are several different types of long-term care insurance. You can do one of the following:
1. Common Types of Long-Term Care Insurance
Most people who need long-term care insurance have this type of insurance. It includes services such as nursing home care, home health care, and assisted living and offers benefits for these services. Benefits are available to users if they pay their premiums on time and meet the eligibility criteria. In most cases, benefits are paid daily or monthly.
2. Hybrid Long-Term Care Insurance
Hybrid plans include long-term care insurance, life insurance, and pensions. These plans can provide a death benefit if you die and do not need long-term care. Users can access these benefits at any time if they need long-term care. Hybrid plans may be more expensive than standard long-term care insurance, but they may offer more options and additional benefits.
3. Shared Care Plan
Some insurance companies’ shared care programs allow couples to share the cost of long-term care. This option is especially useful for married people who want to ensure that both parties are cared for when needed.
Summary
Long-term care planning is an important part of senior health care. Seniors should pay attention to it to avoid unexpected financial problems. Long-term care costs are rising, and without insurance, many people are forced to rely on savings or Medicaid. However, Medicaid may not cover all of their needs. By purchasing long-term care insurance early, seniors can protect their own finances, ease the mental and financial burden on their loved ones, and ensure that they will receive the care they need in the future. When seniors plan ahead and receive the right benefits, they can enjoy their retirement with greater ease and peace of mind.
