Need Long Term Care Insurance?
Senior Couple Meeting With Financial Advisor At Home

Do You Need Long Term Care Insurance?

What is Long Term Care Insurance?

Long term care insurance, also known as LTC insurance, LTCI or long term health insurance, was created to cover the costs associated with the support and services you may need as you age. Unlike your traditional health care policy, long term care insurance reimburses policyholders for such services as in-home health care, the cost of assisted living accommodations and more.

The U.S. Department of Health and Human Services reports that 70% of people age 65 and older will need some type of long term care in the future. We are living healthier and active lives these days, which means many of us will live well into our 80s and beyond. However, even the healthiest individuals may need some type of long term care down the road, simply due to the chronic conditions linked to aging.

This is why long term care insurance can be an appealing option to certain people, as it provides peace of mind knowing that your future health needs will be met. Keep in mind that your current health insurance does not cover many long term care services, and Medicare only pays for a short-term stay in a skilled nursing facility after you have been hospitalized for at least three days. Then, they will cover the next 20 days of care. This is where a long term care insurance would come into play—depending on the coverage you have chosen.

What Does Long Term Care Insurance Cover?

There is no average cost for LTC insurance, as the costs will vary and depend on a variety of factors, including:

The Insurance Company Chosen: Different insurance companies offer different rates and types of policies, so the coverage will vary based on the insurance company you choose to work with. Get quotes from several different insurance companies before making any decisions. Then, talk to a financial advisor and read all the fine print before signing any paperwork.

Amount of Coverage Selected: You can expect to pay a higher premium if you’re adding more coverage. For example, setting higher limits on the daily and lifetime benefits, less restrictions on the types of care that are covered, and protection against inflation for cost of living, your rates will be higher. 

Your Current Age and Health Status: Generally speaking, the older and less healthy you are, the more long term care insurance will cost. If you’re interested in coverage, it’s recommended to purchase it at a younger age and before your health may begin to decline.

As you begin researching long term care insurance policies, look for options that will cover the types of services and facilities in your area. Most comprehensive long term care insurance will cover services like assisted living or personal care apartments, skilled nursing and rehabilitation, memory care and support services, in-home caregiving, and adult day services or respite services.

Depending on each individual’s budget, long term care insurance may not be an affordable option for everyone. Still, it’s an important choice to consider for your future health needs.

A Continuum of Care at Concordia

As a continuing care retirement community, Concordia Life Care Community provides maintenance-free living with the peace of mind that as your health care needs change and you transition from independent living, the level of services we provide change with you. View our floorplans today, or contact us to schedule a visit to see all our beautiful community has to offer.

Retirement & Planning