Long Term Care & Insurance

It happens to all of us eventually. We get old. It is a good thing, really, but it does have some drawbacks, mainly issues related to declining health. Many of us also have aging parents or other loved ones who may need some type of health care in the future. Should you consider long-term care insurance to cover some of those costs for yourself and your loved ones?

Who Will Need Long Term Care?

According to the American Association of Retired Persons (AARP), 70 percent of Americans who reach the age of 65 will require long-term care during their remaining years. One out of four will need more than two years of paid care, and about 15 percent will end up spending more than two years in a nursing home.

Locally, the average cost of a private room in a nursing home is over $9,000 per month, while assisted living reaches an average of $4,500 per month. For many people, family and friends will take care of them, but the AARP says about half will eventually require some type of paid assistance.

Medicare is Not the Answer

Medicare is the government provided health insurance for people 65 and older. It does not cover long-term care beyond some professional care after hospitalization for an injury or illness, typically with a maximum of 30 days. There are some Medicare Advantage plans offered by private insurers that provide some additional long-term care help, but the services offered are limited. These plans should not be considered sufficient coverage for long-term care needs.

Long Term Care Insurance

There is a good chance you or someone you love will need some type of long-term care. How will you pay those expenses without draining your bank account or retirement savings? The most likely answer is long-term care insurance.

Long-term care policies can be like other types of insurance policies. You can either pay regular ongoing premiums or pre-fund this coverage as a lump sum. You can choose the amount of coverage you need and for how long you need it, as well as what works best for your budget. Typical policies will define how much you can receive on a monthly basis and how the funds will be distributed. They also establish maximum limits, including the number of years you may receive benefits. The more coverage you want, the more you will pay. Long-term care benefits are paid out tax-free for qualified expenses.

Talk to 1st Source

There is much more information and much more to consider when you determine if long-term care insurance is right for your family situation. Our team of experts will answer your questions and help you decide what is right for you. Please give us a call at or contact us via email.

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