Long-Term Care and Life Coverage - Questions & Answers
I've heard about LTC, but what does it really consist of?
LTC stands for long-term care. LTC consists of a broad range of services that are provided to meet health or personal care needs over an extended period of time. Most long-term care is non-skilled personal care and assistance with the activities of daily living, but it can also include home health care, community care, and care in a variety of long-term facilities.
Long-term care insurance is an insurance contract between a policy holder and an insurance company. It provides the holder with guaranteed coverage for the selected long-term coverage areas.
I thought the government pays for long-term care - why would I need LTC insurance?
Contrary to what many people believe, Medicare does not pay for most long-term care services. And while some may qualify for Medicaid, which is government assistance, most people won't. Other programs from the federal government, such as the Older American's Act, and some state-funded programs may pay for some long-term care services. It's very likely though that you will have to pay for some of all of your long-term care expenses out of your personal income and retirement savings.
I expect to retire with a portfolio of over $1 million. Isn't that enough to cover any unexpected costs?
The economic reality is that LTC expenses can quickly eat away at your portfolio. Cost of care nationally hovers around the $118,000.00 mark. Remember, you're building your retirement portfolio to provide a base of income in your retirement years and to have money to leave to your heirs. Simply put, long-term care is expensive. It can result in a devastating financial loss and greatly impact your retirement years, as well as the lifestyle of the healthy spouse. Additionally, it can have deep negative consequences to your family should the burden of care fall unexpectedly to family members.
So how do I know whether LTC insurance is right for me?
Purchasing LTC insurance is typically part of a solid planning process when considering provisions for you and your family. But there are other key factors as well. We help you look at the larger picture of where you are in your life and your finances and put together the right plan, with the right carrier. A plan that is suited to your needs. Contact us and we'll help you get started.
What about life insurance - how does it link to long-term care?
Life insurance and long-term care insurance are the cornerstones of a smart overall financial plan that protects you, your family, and your estate. Life insurance not only replaces lost income for dependents, but some types of life insurance accumulate cash value that may generate tax-deferred savings. The living benefits of whole life insurance are tremendous. Life insurance, disability insurance, and long-term care insurance should all be a part of your solid financial plan.