What is Long Term Care?

 

Long Term Care consists of the personal services you would require if you are not able to perform activities of daily living such as eating, taking a shower, getting dressed, moving from your bed to a chair and back and going to the bathroom. These services can be provided in a nursing home/institutional setting or in your own house.

Who Needs Long Term Care?

 

When we think of people who require Long Term Care, many of us immediately imagine the elderly. Indeed, 60% of people in Long Term Care are over the age of 65 and nearly 70% of us will require some form of it after we reach 65 years of age.  However, 4 in 10 recipients are aged 18 to 65, so Long Term Care is in no way limited to the elderly.  In fact, Parkinson’s, strokes, accidents and other causes of disability can strike people at any age and result in the need for Long Term Care. 

 

How long does the average person need Long Term Care?

 

The length of time that someone needs Long Term Care can vary from individual to individual.  At the far end of the spectrum long term care can last for several years or be as short as a few months.  On average though, in the US the average amount of time that an individual requires Long Term Care is 18 months.

 

How much does it cost?

 

An average nursing home facility in Florida will cost in the region of $9,000 per month.  This number can be significantly higher if special attention is required or if the recipient of the care receives the care at their own home.  The cost of long term care is rising rapidly in the US and is expected to exceed $20,000 per month by 2030.

 

What are my options to pay for Long Term Care?

 

With average costs of $9,000 per month and a duration of 18 months or more, most Americans cannot afford the cost of Long Term Care if paying out of pocket. Medicare and most medical insurance will not, for the most part, pay for Long Term Care. However, Medicaid does cover Long Term Care costs though it only applies for people who have no income and almost no assets besides a home and a car. The federal government can then seize the home and car of some Medicaid recipients after they pass away in order to recuperate the costs of Long Term Care covered by Medicaid. One viable option available to many people is to take out Long Term Care insurance while they are still relatively healthy and young (under 65). Long Term Care insurance can take many forms and may not be ideal for everyone, so it is important to reach out to an expert who can explore the many options available and see if Long Term Care insurance is right for you.

 

I’m over 65 and relatively healthy, but they say I’m too old for Long Term Care insurance.  What are my options?

 

When you are over 65 and still healthy, it may be hard to get Long Term Care insurance simply because of your age.  The good news is that there are non-insurance options available to drastically reduce the cost of paying for Long Term Care entirely out of pocket.  These non-insurance options are similar to insurance in that you pay a monthly fee similar to a premium during the years before you need Long Term Care.  These plans can be great ways to protect your assets from being spent down quickly in the event that you need Long Term Care for an extended period of time.  

 

Are you or a loved one looking into long term care options for the future? If so, be sure not to go it alone in your analysis of the options. Call in long term care expertise: you can book a session with us to review your needs and we can show you options available to achieve your goals.  Click here to book a free, no obligation session with us, by Zoom .