What Is Long-Term Care Insurance?

Is Long-Term Care Insurance Right for You?

Long-term care insuranceIf you become chronically ill because of a cognitive impairment, or because you’re unable to perform at least two activities of daily living without substantial assistance, long-term care insurance could help pay for the care you need. Depending on the level of care required, it may be provided in a nursing home, an alternate care facility, or even at your home.

In addition to helping pay the costs of long-term care, this type of insurance may help to provide these benefits:

  • Protect your savings and other assets
  • Preserve your independence
  • Exercise your own choices
  • Avoid government dependence
  • Maintain a better quality of life

The Costs And Risks Of Long-Term Care

  • A nursing home stay costs an average of $87,000 per year according to a recent national study, and this is just one of many costs associated with long-term care.
  • If you’re unable to pay for long-term care when you or a loved one needs it, you may need to reduce your assets in order to become eligible for Medicaid to pay the costs of care.
  • 70% of those over 65 will need long-term care at some point in their lives.
  • 40% of all adults in the United States require long-term care before they reach the age of 65.