Some key points about Long-Term Care (LTC) Insurance are covered below:
1.) Long-Term Care (LTC) Defined.
2.) Why is Long-Term Care (LTC) Insurance Important?
3.) Is LTC Insurance Right for you?
1.) LONG-TERM CARE (LTC) DEFINED:
Long-Term Care (LTC) is the personal care and other related care services provided on an extended basis to people who need help with the activities of daily living or who need supervision due to a severe cognitive impairment. This type of care is considered Custodial/Chronic (non-skilled) care. It is NOT acute or rehabilitative care, which is known as skilled care.
When you need long-term care, you usually need help with your activities of daily living. These are items such as bathing, dressing, toileting, continence, eating, and transfering. Or, you may be able to do all of your activities of daily living but still need care and supervision due to a severe cogntive impairment (memory loss, dementia, etc.). You may be able to dress yourself, but you may not remember to take your medications.
Statistics show that at least 6.4 million people aged 65 or older need long-term care. Currently one in two seniors over age 65 are requiring some amount of LTC. Looking ahead, at least half of the population who are 65+ will need help with Activities of Daily Living. Most people think of long-term care as something needed by older people, but accident or illness can strike someone of any age. When it does, they too may find themselves in need of assistance.
2.) WHY IS LTC INSURANCE IMPORTANT?
You will buy LTC insurance for one or more of the following compelling reasons:
a.) To guarantee your CHOICE OF CARE and CARE-GIVERS, allowing you all of the options covered by a COMPREHENSIVE LTC insurance policy (which covers Home-based Care, including Adult Day Care; Assisted Living Facility Care; and Skilled Nursing Facility Care.
b.) To PRESERVE YOUR ESTATE'S ASSETS, sufficient to cover your retirement needs plus the funding of your legacy objectives; for example gifts to family, alma mater(s), or other worthy causes.
c.) To PRESERVE YOUR INDEPENDENCE.
d.) To AVOID BEING A BURDEN to your family.
Regarding point a,) above, namely, the guarantee of CHOICE OF CARE and CARE-GIVERS, the most regarded generic options/choices for “Aging-in-Place” are one's current private residence; the private residence of a family member or dear friend; and the Independent Living Unit (call it an Apartment, Villa, Cottage) in a Continuing Care Retirement Community (CCRC).
Therefore, while you still have sufficient cognitive competence and sufficient physical wherewithal, you are well advised to do your homework.
Spend time initially in reviewing the generic options/choices available to you for your “Aging-in-Place” years ahead and then spend time reviewing your site-specific alternatives for “Aging-in-Place” through planned visits.
