What is Long-Term Care?
Long-term care (LTC) is the help provided to someone with severe cognitive impairment or a chronic illness or disability that prevents him/her from performing at least two activities of daily living which include bathing, dressing, eating, using the toilet, transferring, and continence. Long-term care may be provided at home, in an assisted-living/residential-care facility, or in a nursing home. If not planned for strategically, paying for long-term care can quickly deplete financial resources and reduce the quality of life for the person affected as well as caregivers.
What is Long-Term Care Insurance?
Long-Term Care Insurance (LTCI) is private insurance to cover the costs of long- term care for people with chronic health conditions and/or physical disabilities who are unable to care for themselves. If you don’t want to spend down your savings to qualify for Medicaid, LTCI can help you preserve assets for family members. LTCI generally covers the cost of nursing homes as well as certain agency services such as visiting nurses, home health aides, and respite care.
On average, LTCI policies cost Americans $888 per year at age 50, $1850 per year at age 65, and $5,880 per year at age 75. On a national average, nursing home care costs more than $51,000 per year. Based on your region, it can cost much more. Most life insurance companies offer LTCI individual coverage. Group coverage for yourself and possibly for your parents may be available through your employer or other associations.