Long Term Care (LTC) Basics

WHAT IS LTC?
WHAT ARE THE RISKS?
WHAT IS THE COST?
HOW CAN LTC INSURANCE HELP?

WHAT IS LTC?

LTC is the medical, maintenance, and support assistance provided for those who have a chronic illness, disability, or cognitive impairment, and need help with the activities of daily living. These services often begin with care in the home, followed by a wide range of facility care. More than 12 million people of all ages now receive LTC in the U.S.

WHAT ARE THE RISKS?

It is difficult to assess the actual risk of needing LTC, as there are a number of variable factors including family histories, age, and lifestyle choices. Some research indicates that one in two Americans will need long term care at some point in their life.

The risk may be much higher than most people realize, and is certainly higher than nearly any other type of risk for which insurance protection is considered, with the exception of life insurance. However, one thing is certain. Each of your members and their employees has this risk, and for couples, the risk of at least one needing such care is proportionately higher still.

WHAT IS THE COST?

The essential issue of LTC is the cost, which often reaches thousands of dollars each month and may last for years. These costs may affect the financial security of your members and their families, as most long term care expenses are paid with personal or family assets. Neither traditional medical insurance nor Medicare was designed to pay for these services.

HOW CAN LTC INSURANCE HELP?

A quality LTC insurance program helps to protect your member’s assets by providing financial resources for these services. The three basic reasons why individuals should consider LTC insurance are:

“….to protect the family. It is the family that has to deal with the debt and the problems, the loss of security, and the tremendous load of caregiving.

… it helps to assure that the person needing care will receive it, and have a greater choice of who gives it and where. A well designed LTC policy may permit the insured to remain at home for a much longer period of time.

… because investment, retirement, & estate plans are not complete nor adequate unless they include protection of their assets from what may be the greatest financial risk.”