Traditional health insurance, Medicare, and Medicare Supplements will not cover a long nursing home stay, care at home or care provided in an assisted living facility. Most people who have only standard insurance coverage must bear the financial burden of long-term care either entirely on their own or with assistance from their families.
Long-Term Care (LTC) insurance significantly eases this burden by reimbursing the cost of a variety of services designed to assist an individual with the functions of day-to-day living while remaining independent; whether they are living on their own, or in a health-related facility. A range of services available in the community designed to help meet long-term care needs are covered by a policy. This includes visiting nurses, home health aides, friendly visitor programs, home-delivered meals, chore services, adult daycare centers, and respite services for caregivers who need a break from daily responsibilities, which can supplement care given by family members.
You could choose to buy a Long-Term Care policy with a daily benefit that would cover the entire cost, or you could buy enough insurance to cover a portion of the cost and plan to self-insure any extra expenses yourself, which still limits some of your risk.
Unlike most types of coverage, Long-Term Care provides favorable tax treatment on both premiums and benefits. In addition, since many people purchase Long-Term Care insurance 10, 20 or 30 years before receiving benefits, inflation protection is an important option to consider. Indexing to inflation allows the daily benefit you choose to keep up with the rising cost of care.
A Long-Term Care strategy should be a part of any retirement plan. Owens Group can help facilitate this important discussion and provide solutions for your specific needs.
Life, Health & Employee Benefits Manager