Long-Term Care

Long-term care insurance typically covers all or part of assisted living facilities and in-home care for people 65 or older or with a chronic condition that needs continuous care. It is a private insurance available to anyone who can afford to pay for it. Many people think the phrase "long-term care" refers to an insurance policy. While insurance may be part of your strategy, long-term care encompasses everything from long-term services and supports and finances, to where you will live and how you will navigate the innumerable dynamics along the way.

Long-term care (LTC) is defined as care that lasts longer than three months. LTC covers the costs related to a nursing home stay, assisted living facility, adult day care services, home modifications or caregivers coming to your home when an individual gets older and begins dealing with health issues. For many people this allows them to receive the care they need, while also continuing to live in their home longer.

Most Americans will need some kind of long-term care, and LTC insurance is the best way to pay for it. 65-year-olds today have a 70% chance of needing long-term care, and an estimated 20% of Americans will need it for longer than five years. Women need care longer (3.7 years) than men (2.2 years). Only about 7.5 million Americans have long-term care insurance. The only group of people who might not need long-term care insurance are those who have a high enough net worth to self-insure.*

Long-term care insurance is the best solution. It’s a great way to offset the increasing costs of long-term care as you age. It also gives you peace of mind and will protect your savings you worked so hard to build. You’ll know that if you do become ill, you can afford the care you need and still have enough money left over so you and your spouse can eat. Plus, your kids won’t be burdened with huge payments for your care.

*info obtained from www.longtermcare.gov.