Long-Term

Long term care (LTC) is the medical care provided when a person can't care for themselves for a significant period of time.

A person can receive long term care in their home or in assisted living homes. Caregivers help with the daily tasks that may be difficult to perform alone - including help with dressing and bathing. Anyone of any age can benefit from long term care, but most is provided for senior citizens.

How Much Does Long Term Care Cost Without Insurance?

Long term care can be very expensive. Depending on the services you need, costs could be between $20,000 and $60,000 a year. In some parts of the country it could be more.

Most people can't afford medical expenses that large without spending their life savings. That's why people buy long term care insurance. And long term care insurance is a smart way to protect yourself. For anyone over 65 years old, the chance of needing long term care is more than 50%.

You may think Medicare and Medicaid will cover all of your long term care needs. But these programs only cover temporary, medically necessary care. That means long term care has to be paid for out of your own pocket.

Why Should I Buy Long-term Care Insurance?

If you're over 65 years old, the chance of needing some form of long term care is more than 50%. And some estimates say those who need long term care have a 40% chance of requiring stays in an assisted living community.

And because long term care can be very expensive, an LTC insurance plan is a smart investment that can prevent your life savings from disappearing.

How Long Term Care Insurance Covers You

Most long term care plans pay for each day you receive care. Plans can have benefits between $50 to $300 a day - and sometimes more. You will be able to choose the amount and length of coverage. Keep in mind the more coverage you get and the longer the period your policy is in effect - the more the policy will cost.

Will I Be Able To Afford Long Term Care Without Insurance?

The costs of daily long term health care can be as much as $60,000 per year. Depending on the part of the country you live in, it could cost even more. With expenses that high, your life savings could vanish very quickly.

With long term care insurance, you can make sure you can afford care when you need it.

What Should I Consider?

Long term care insurance is protection against future medical care expenses.

You should consider:

Affordability. Think about how much coverage you would need in the worst-case scenario. Then think about how much you can realistically afford. Now try to find a compromise between the two.

When should I get long term care insurance? The younger you are when you find the right plan, the less expensive it will be. Buying a long term care policy five or so years before retirement is usually cost-effective.

Inflation protection. You can make sure your benefits won't lose value with inflation protection. Because your benefit amount is in dollars, your long term care insurance could actually lose value as you get older. Inflation protection will automatically increase your benefit amount at a certain rate each year.