Long Term Care Planning and Insurance

long term care insurance

Until you are faced with a debilitating health condition, you may never learn about long term care insurance. In fact, what you haven’t learned about long term insurance options may cause financial hardship in the future. Statistics tell us that more than 50% of people turning 65 today will need long-term care at some point. Yet, out of more than 313 million Americans, only 8 million have the protection of a long-term-care insurance policy. The Alzheimer’s Association estimated that end of life care in 2016 cost between $217,820 and $341,651. [source: https://www.alz.org/documents_custom/2017-facts-and-figures.pdf]

There are many ways in which we are expected to plan for our futures, and nobody expects to have their nest egg decimated for failure to plan for the worst. What you don’t know can lead to potential financial ruin for yourself or a loved one. We believe it is important to open a dialog about long-term care with your spouse and your family. Why does one need Long Term Care Insurance? We are PBI, and we are in the business of insuring your future. PBI Insurance is Connecticut company that provides individuals and businesses with insurance and financial planning resources.

Long-term care describes a person’s medical needs and non-medical personal care. Most Long term care in the U.S. occurs in the home, not in a nursing facility. Care can be provided from a number of different sources, from friends and family members to paid home assistance to nursing facilities. Suppose your parent has a debilitating condition, such as dementia, ALS, or a medical condition from which he is not expected to recover. Non-medical services include meal preparation and feeding, bathing, reminders to take prescribed medications on schedule, bathroom assistance, and other “custodial” care.

Opening up a dialog about your long-term care options with a trusted insurance agency is the first step. It is important to understand what your financial burden will be with the options before you, and how to qualify for and receive benefits with which to pay for needed services. A 2013 Public Opinion Strategies poll found that 65% or Americans surveyed have made no long-term care plans at all. According to the U.S. Department of Health and Human Services, 70% of those over 65 will need some sort of long-term care during their lifetimes. Long-term care insurance transfers a portion of the risk of long-term care expenses to an insurance company helping to protect you and your family from potentially devastating expenses.

Medicare and Medicaid are federal programs that pay for portions of medical or non-medical care. Medicaid is the payor of last resort for those with no assets. There are strict financial eligibility requirements associated with Medicaid that vary from one state to another. Medicaid planning can be complex and challenging, and we strongly advise you consult a professional who can work through the eligibility requirements with you. Private long term care insurance is an option open to those who are able to afford it. There are many types of long term care insurance with a wide variety of benefits. Veterans Administration Benefits also provide a home care/assisted living benefit, usually available to veterans and their spouses. Again, you must meet certain criteria to qualify for VA benefits. When it comes to end of life care, what you don’t know can devastate you financially. At PBI Insurance, we will be happy to meet with you to talk about your options for long-term care. We have offices in West Hartford and Hamden for your convenience. Call today: 860-233-1171.