Long Term Care Basics
Long term care (LTC) is the assistance or supervision that you and 70% of the people over 65 will need when you are able to unable to perform everyday task or the activities of daily living (ADL), like bathing, dressing, eating etc. You may also need long term care from the following:
• Stroke, Heart Disease, Respiratory Disease
• Senility and Alzheimer’s Disease
• Parkinson’s Disease and Organic Brain Syndrome
• Cancer and Diabetes
• Arthritis, Bone Fractures and Automobile Accidents
• Depression and Multiple Sclerosis
Approximately 65% of Americans surveyed believed that they will never need nursing home care. Here are the facts:
Statistics of Long Term Care:
One in three people over age 70 have memory impairment
• Approximately 40% of people over age 85 have cognitive impairment, which includes Alzheimer’s Disease
• More than 70% of Americans over 65 will need long term care services
• For married couples the chance that one spouse will need long term care is approximately 91%
• The life expectancy at age 65 for women is 85.5 years and for men is 82.9 years
• 20% of people over 65 need long term care for over 5 years
Today the cost of Long Term Care will bankrupt most American families within just a few years.
Cost of Long Term Care:
• About 75% of all single people and 50% of all couples spend their entire savings and become
destitute within one year of entering a nursing home
• Average cost of home health care $45.188 per year
• Average cost of nursing home care $86.600 per year
• Average savings of a 50 year old is $43,797
Long Term Care Partnership Program can protect all of your assets dollar for dollar (Please note the Federal Long Term Care Insurance Program does not qualify as a Partnership policy at this time.)
Partnership polices are an agreement between private insurance companies and the state governments that help citizens plan for future long term need without depleting all of their assets to pay for care. For every dollar that a LTC Partnership policy pays out in benefits, a dollar of personal assets can be disregarded to qualify for Medicaid and will not be recovered during estate recovery when the individual dies. With a Long Term Care Partnership policy a person can qualify for Medicaid without spending him or herself into poverty.
For example, let’s say you purchase a LTC policy today that pays $300,000 through a Partnership Qualified policy. When the care is needed years from now, the policy actually pays $900,000 (due to yearly compounding of the benefits). The policyholder would have $900,000 in assets protected from Medicaid. This would have nothing to do with the amount of premiums paid over the years, which are a fraction of the amount they protect.
What are the risks?
Most people wouldn’t think about going without auto or house insurance, but the odds are much higher that you’re going to need Long Term Care.
• Automobile Accident 1 out of 240
• House Fire 1 out of 1200
• Long Term Care 1 out of 2
Remember if you don’t purchase LTC Insurance when you are healthy, the insurance companies won’t insure you if you develop a health condition. Do not try and solve a problem after it happens, and do not gamble with your loved ones. You want to take care of your wife who will statistically live longer than you and not leave her destitute in a public institution, with a personal needs allowance of only $40 a month. You want to preserve your life savings for your children to make their life better, and not hand it over to a nursing home. You also do not want to burden your spouse or you children, who may not be prepared or financially able to take care of you. A long-term care policy makes sense and the premiums are pennies on the dollar, compared to the amount of assets it will protect. Long term care policies are affordable and most of the time you can purchase without affecting your life style, or depleting your life savings.
Most local agents who are not specialist like Long Term Care USA offer just 1 or 2
companies. The vast majority of the internet insurance websites just get paid to refer you to a local agent who will come over and “hard sell” you with a 3 hour presentation and will pressure you to buy on the spot. It is always best to consult a company like LTC USA who work with all the “blue chip” Insurance companies, so that you can shop the entire market and save the most money, and to determine how much coverage to buy. You can be mailed the information and analyze it in the comfort of your own home, with no pressure.
Long Term Care Usa is the most comprehensive one-source
comparison guide for LTC Policies in the USA today
- Price comparison quotes from all the top insurance companies in the USA, including their financial profile, size, and A. M. Best ratings.
- Easy to understand side-by-side comparisons of each company’s policy features and options.
- We show you the policy similarities and differences.
- Become an expert instantly.
Carriers quoted will vary from state to state.)