People 60 years old and older require long-term assistance and care in a few years, making it an issue in most US households. The need for long-term care is paramount, but only some seek advantage of it. It is the assistance with personal and medical needs over an extended period. Long-term assistance is expensive, and people can’t afford to cover the expenses. Traditional health insurance doesn’t cover the extensive day-to-day care and pays only for hospital bills and doctor visits, long term care insurance aids to handle the expenses involved in long-term assistance.
Extends coverage in Multiple Settings
When people plan for long-term care, most of them conceive of nursing homes. More than 75% of people receive long-term assistance and care at homes and not in nursing homes or assisted living facilities. Individuals need long-term care when they fail to perform day-to-day activities like eating, bathing, dressing, and moving independently. A long-term care insurance holder receives the services via a home health aide, and it covers the expenses. Most people want to stay home instead of shifting to assisted living facilities or nursing homes.
Fills the Caregiving and Health Assistance Gaps
When life-term care and assistance are necessary, family members can’t carry out day-to-day responsibilities regularly. Logistics might not be feasible when family members stay far away and have personal and professional obligations. Long-term caregiving is an emotional and financial burden, and 65% of caregivers fail to commit. People exhaust their retirement plans and savings to pay for long-term medical and personal care. Investing in long-term care insurance is a wise decision to fill the healthcare and caregiving gaps.
Covers Extensive Healthcare Expenses
Medicare doesn’t cover long-term assistance and care bills. It pays for assistance and care at home under restricted circumstances. Medicare pays for skilled nursing home care for a limited time (not more than 100 days). Medicare doesn’t cover the expenses when the health condition stabilizes and the patient demands more of a long-term custodian and personal care. It is a reason why long-term care insurance policies are vital for those in need of long-term home assistance. With the long-term care insurance policy, the patient doesn’t have to drain his entire savings funds.
Savings Fund is Not Adequate for Long-Term Assistance Needs
There are different types of long-term assistance and care services. It ranges from day-to-day chores to full-time private hospital setups. The average cost of assisted living facilities and 24/7 nursing homes are expensive. Moreover, patients heal better in a home environment than in facilities and nursing homes. With the increasing costs of long-term assistance, retirement savings, and personal funds are inadequate to cover long-term care costs. Hence, investing in a long-term care insurance policy is an excellent idea.
Varying Long-Term Care Insurance Costs
Insurance costs depend on the level of policy coverage and the patient’s age. For instance, the American Association for Long-Term Care Insurance reveals that a couple (both 55 years old) considering an initial coverage benefit of around $150,000 pays an annual premium of approximately $ 1,700. For a couple 65 years and above, the premium rises to $ 3400 per year or more.
Popularity of Hybrid Life and Long-Term Care Insurance
Different types of long-term assistance and care policies are surging in popularity. One such example is the hybrid life and long-term care insurance policy. It combines long-term assistance insurance with permanent life insurance and offers more options.
- If the policyholder dies before seeking long-term assistance, the policy delivers life insurance benefits,
- If the policyholder intends to utilize the money other than assistance and care, he receives a cash value equal to or less than the total paid premiums.
- There is a guarantee of constant contract terms and conditions and premium rates.
Conclusion
Long-term caregiving takes an emotional and financial toll on the caregiver. Patients exhaust their retirement savings and personal funds on long-term medical and other needs. There are multiple reasons for investing in long-term care insurance. Long-term insurance policies cover day-to-day assistance activities like eating, bathing, walking, sitting, and sleeping. Long-term assistance and care expenses are rising, and general healthcare policies don’t cover such costs. There are different varieties of long-term assistance policies. Picking the policy based on the health conditions and the daily needs is ideal.