What is Long Term
Care Insurance?
Long term care is simply assistance with day-to-day activities: getting in and out of bed, using the toilet, bathing, dressing, eating, and providing a safe environment for those with dementia and Alzheimer’s disease. Long term care is delivered in one’s home, in assisted living facilities, adult daycare centers and in nursing homes.
As we age, the possibility of needing assistance with daily activities becomes a reality. Long-term care insurance provides a financial safety net, offering benefits to cover costs associated with home healthcare, assisted living facilities, or nursing homes. According to Mutual of Ohama, the cost of a nursing home can be $113,842 a year, and a home health aide can cost $70,058 a year. By investing in long-term care insurance, you can transfer this financial risk to an insurance company, safeguarding your retirement savings and other assets from potential depletion.
Long term care includes all the assistance you will need with daily living tasks if a chronic illness or disability leaves you unable to care for yourself for an extended period. It could be care in your home or a specialized facility. Chances are the day will come when you won’t be able to manage on your own. In fact, almost 70% of those over age 65 will require some form of long term care insurance. So in short, anyone can benefit from having the peace of mind that comes with long term care insurance.
This helpful document from Life Happens provides a great summary of Long Term Care Insurance.
What Disqualifies Someone From Long Term Care Insurance?
Long-term care insurance (LTC) eligibility can be affected by several factors, including:
- Age
Applicants who are 85 or older may be considered too risky to insure. - Pre-existing health conditions
Insurance providers often assess an applicant’s health status before approving coverage. Conditions such as advanced Alzheimer’s disease, Parkinson’s disease, certain types of cancer, or other severe health issues may lead to disqualification. However, some conditions, such as high blood pressure, high cholesterol, and diabetes, may be acceptable if they are under control and stable. - Other health factors
Recent health events, cognitive impairments, functional limitations, and terminal illnesses may also disqualify someone from obtaining coverage.