Long-Term CareInsurance Could Provide the TLC You Need

There are only two things you count on taxes and death, for everything else, there’s insurance.

Long-Term Care Insurance is relatively new in the long history of insurance. For most people in brings to mind images of nursing homes, but it actually covers any type of long-term care.

Long-Term care is basically anything that isn’t crisis care. It includes:

• Assistance with Personal Care Services
• Not Rehabilitative in Nature
• Commonly Understood as Lasting 90 Days or More
• Due to Physical or Cognitive Impairment
• Not Acute Care

Long-Term Care is care that is needed for more than 90 days. It can be accessed in cases of accident, decline or loss of cognitive ability. In general, long-term care refers to help with basic activities of daily living such as bathing, dressing, eating, and using the toilet. Long-Term Care can be provided at home, in assisted-living facilities, or in nursing homes.

Long-Term Care Insurance, however, is something that you have to think about before you can even predict if you’ll need Long-Term Care.

So who needs Long-Term Care Insurance?

Consumer Reports suggests that you skip Long-Term Care Insurance when:

  • Your net worth is less than $200,000, because you would soon be eligible for Medicaid should you need long-term care.
  • Your net worth exceeds $1.5 million, because you can afford to pay for that care yourself.
  • You can’t afford the premiums, or won’t be able to do so in the future should a sharp increase in premiums occur.

The magazine suggests it might be wise to purchase Long-Term Care Insurance when:

  • You are age 55 and have a chronic medical condition, or you have a family history of debilitating disease that may create a need for long-term care services in the future.
  • Your assets are between $200,000 and $1.5 million, and you must protect those assets for a spouse or other relatives.

That’s a simplified view-point, but not a bad guideline. Long-Term Care Insurance has grown up a lot since it was introduced in the 1980s. You can purchase policies that avoid the “use or lose it” barrier. There are also varieties of options that help you protect your assets for your loved ones. To learn more about Long-Term Care Insurance options contact one of our Investment and Retirement Center Team.


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