What is Long Term Care Insurance?

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long term care insurance, parents and money, elderly care, retirement, retirement planning, nursing home costs

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The following is a guest post. Enjoy!

What is Long Term Care Insurance?
If you’ve listened to any of the popular television financial advisors, the topic of long term care insurance has been mentioned numerous times.  Usually, it is brought up when individuals and families are looking at estate planning, or children are worried about their parents getting older.  The reason is long term care insurance covers things that are generally not covered by regular health insurance, Medicare, or Medicaid.  Instead, long term care insurance focuses on providing care when you’re not sick, but may not be able to perform the basics of everyday life, or need some type of assisted living care.

What Long Term Care Insurance Covers

Long term care insurance is designed to help cover the costs of providing long term care: such as dressing, bathing, eating, walking, or more.  This type of care can be provided in a variety of ways, such as through home care, assisted living facilities, adult day care centers, hospice care, nursing homes, or Alzheimer’s care facilities. 
Long term care insurance usually also provides for a care-giver (either visiting or live-in), companion, therapist, nurse, or possibly a housekeeper.  Depending on the policy maximum, care can be anywhere from visiting at a pre-determined interval to 24 hour care.


Why Long Term Care Insurance Can Help

Many individuals look for long term care insurance because it is currently estimated that about 60 percent of individuals over the age of 65 will require at least some type of long term care during their lifetime.  Furthermore, once long term care is actually needed, it may be difficult to get long term care insurance.  That is why many people seek it out while they are young.
Also, many individuals may not want to rely on their children or family for support, or they may feel like they are burdening them.  As such, long term care insurance can help cover the out-of-pocket expenses associated with getting long term care. Without long term care insurance, the cost of having these services may quickly deplete the savings of the individual, and they could end up a ward of the state or dependent on their children or family after all.  

How about you all? Have you ever thought about getting or know anyone that has long term care insurance? Do you think this type of insurance is worth the money? 


Share your experiences by commenting below!

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    Comments

    1. I saw firsthand how the costs of long term care can affect the family. My mother who lived to nearly 99 years old lived in a long term care facility for nearly eight (8) years. She slowly needed more and more care until she went into the Alzheimers0Dimentia Unit. Her care cost over $85K per year. It used up all her savings. Several years ago, I bought LTC insurance for my wife and myself.
      My recent post Are You Superhuman?

      • Wow! Thanks for sharing that story Krantcents. Was the 85k per year not covered by very much health insurance/medicare, etc?
        My recent post Saving Money on Your Health Insurance

    2. I think this is something I will be considering talking to my parents when they get older. I think it would benefit both my parents and me and my brother. Hopefully they would never have to use it but if they did it would probably be more than worth it.
      My recent post How To Win Scholarships

      • I hear ya Lance. I recently talked to my Dad about LTC insurance. He seemed to think he had it covered by having enough savings, but it is definitely something worth considering.
        My recent post Saving Money on Your Health Insurance

    3. I’m always baffled when I hear the number of people that are requiring skilled care during their elder years. Unfortunately most of them aren’t prepared with LTC insurance and rely on their children or other family members to care for them.

    4. Cherleen @ BFPF says:

      We do not know what the future holds for us. We should be prepared for the worst kind of situation we may get into. Yes, we have been considering long-term insurance.
      My recent post WHAT TYPES OF INSURANCE DO YOU NEED?

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