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Long Term Care
An Introduction to Long-Term Care
Long-term care (LTC) refers to a range of services designed to meet the personal care needs of individuals who have chronic illnesses, disabilities, or cognitive impairments. These services can be provided in various settings, such as at home, in assisted living facilities, or in nursing homes, depending on the individual’s condition and needs. Unlike traditional medical care that addresses short-term illnesses or injuries, LTC focuses on helping individuals with activities of daily living (ADLs), such as bathing, dressing, eating, and managing medications. LTC can also involve specialized care for individuals with Alzheimer’s disease, dementia, or other age-related health conditions that require ongoing assistance.
Why LTC planning matters?
Chances are you’ll need LTC at some point in your life. Planning now can help you maintain your choices in the future.
Familiar comforts of home
We all enjoy being in a familiar environment — such as our home and the community where we live, with the people we know and love. So it should come as no surprise that when faced with the prospect of needing LTC, 84% of people say they’d prefer to receive home-based care.
Why you need to have a plan?
Costs are expected to increase substantially in the next 20 years.
Home health aide
- 2023: $75,504 annually
- 2042: $132,397 annually
Assisted living
- 2023: $64,200 annually
- 2042: $112,575 annually
Nursing home
- 2023: $116,800 annually
- 2042: $204,810 annually
Know your options
There are many misconceptions surrounding how long-term care expenses can be covered. One important step in creating a plan is to know what your funding options really are:
Health insurance
Does not cover long-term care expenses
Medicare
Covers up to only 100 days if qualifiers, such as a 3-consecutive-day hospital stay under treatment, are met; the first 20 days are covered 100%, but after that, there is a significant co-pay.
Medicaid
Covers long-term care expenses for individuals with countable assets of $2,000 or less (varies by state); care may be limited to a nursing home.
Adult children
Many people might assume that their adult children will care for them later in life, but this can present huge financial, physical and emotional challenges for the children.
Out of pocket
Using income and savings or selling assets might be an option; however, it may leave a surviving spouse with fewer financial resources or reduce a legacy planned for heirs.
Long-term care coverage
LTC coverage can be a cost-efficient way to help protect yourself and your assets from the potentially high cost of long-term care. Reach out to us to help you plan for the Long Term Care needs which could cover you and your spouse.