Contact Achieve FinancialLong-Term Care
The fear of dying to soon has been replaced with living to long. Many families see their parents and grand parents unable to care for themselves leaving the burden on their children. Purchasing long term care allows you to choose who takes care of you and in the place and care of your choice.
What is Long Term Care benefit?
It provides a monthly payment, called a care benefit, if you become functionally dependent and satisfy the waiting period (180 days).
To be functionally dependent means you require substantial assistance with at least two of the six Activities of daily Living or substantial supervision because of cognitive impairment, such as Alzheimer’s disease.
The long term care benefit helps cover the cost of your long term care, so you don’t have to deplete your savings or burden your family.
Most people buy health insurance and insurance for home, car and other property replacement. However, fewer people buy long-term care insurance, either not thinking about it or hoping that their savings will be sufficient to meet any associated expenses.
In fact, long-term care can be very expensive and can deplete a lifetime of savings within a few years. (Long-term care in nursing homes can cost an individual more than $40,000 per year.)
Who Needs Long-Term Care?
Long-term
care is typically needed by the elderly, but it is also required by anyone with
a debilitating illness or injury who needs assistance to perform what we
consider everyday functions, such as feeding oneself, bathing and getting
dressed.
Like other services covered by insurance, long-term care insurance must be
purchased before the insured requires the services covered under the policy.
This means that many individuals will purchase the policy and never benefit
from it. The likelihood of this happening is greater among younger individuals,
whose chances of requiring long-term care are lower. Consequently, some
financial professionals recommend that only individuals closer to ages 50 to 65
purchase long-term care insurance, as these individuals are more likely to
benefit from the purchase of a policy.
If you are employed, you may want to check with your employer regarding
coverage, as some employers provide long-term care insurance for their
employees, and some will even extend coverage to parents of their employees. If
you are already covered under an employer-sponsored policy, then you may not
need to purchase a separate policy until after you retire.
Cost of Long-Term Care Insurance
The cost of long-term care insurance is usually determined by factors such as the type of policy, the age of the insured and the time period the policy covers. Naturally, policies that provide coverage for an unlimited period will cost more than policies that provide coverage for a limited period. Policies purchased at an early age are less costly than policies purchased later, because a younger person is more likely to pay premiums for a longer time. The cost of the policy may also be affected by the preferred location of the service - whether in-home, at a nursing home or at some other facility providing professional care - and whether the coverage is comprehensive or basic, as defined by the policy.
Things to Look for in a Long-Term Care Policy
When you purchase long-term care insurance, you must pay attention to what the policy covers. For instance, the definition of disability may differ among plans: it can vary from a condition that makes an individual unable to perform simple everyday functions, such as getting dressed, to certain medical problems as defined by the policy. Here are some other features you should consider before you choose your long-term care insurance:
- Inflation protection - Does the policy include an inflation protection feature? This ensures premiums do not increase, or at least limits the rate at which they do increase, even if the cost of long-term care increases.
- Deductible - Does the policy include a deductible, and if so, how does it define it? The definition of deductible may include dollar amounts and/or a period of coverage. For instance, the insured may be required to pay expenses out of his or her pocket for a certain number of days, as defined by the deductible.
- Coverage - Coverage is the amount of expenses covered by the policy. Some policies will pay up to a certain amount per day. This could affect the type of care you choose - whether in-home or at a professionally-run facility - and the care provider you choose, depending on their fees. Higher coverage usually means a higher premium. Whatever the costs involved, you need to be aware of coverage so there are no surprises when you need the benefits.
Period of coverage - A plan may limit coverage to a certain number of years. Additional coverage may require additional premiums.
Contact Achieve Financial to find out more about Long Term Care!
Eldercare
Eldercare is a journey. The first step is gathering information.
Care giving for an aging parent, spouse, domestic partner or close friend presents tough challenges ... especially when a crisis hits and responsibility descends upon you suddenly.
Maybe your mother has fallen ... perhaps due to instability caused by prescription drug side effects ... and is hospitalized with a broken hip. Or your spouse has wandered off and become lost several times. Or a long-time friend and mentor has lost a lot of weight and rarely seems to leave home.
Care giving descends upon us in all sorts of ways - through sudden crises or a series of small but unsettling mishaps and warning signs. You may be the only person to step in or you may simply be the linchpin of a large network of family members and friends willing to help.
Whatever the situation, you're not sure of the next step. Or even the first step. If you are looking for guidance in how to deal with aging parents, we hope these resources will make your journey a little smoother.
Contact Achieve Financial to find out more about Eldercare!
