Long Term Care (LTC) - Protecting Your Assets
You probably don't need another bill to pay, but skipping this protection could destroy your retirement that you have worked so hard for. This could happen even long before you're older.
Disability insurance, health and long term care insurance are not the same. Disability insurance replaces your income if you cannot work. Long-Term- Care pays for your care. Medicare does not cover Long Term Care.
If you have children, you may assume they will take care of you. They may be fine with that. What happens if the children do not live in your area, or you need more care than your children can give you? This can produce a hardship on the family that can be avoided by having a Long-Term-Care policy in place.
Long-Term-Care policies also give you the option to have care provided in the comfort of your home or Assisted Living Facility. Nursing homes can charge as much as $75,000 per year and Home Health Care aides charge $14 to $27 per hour.
There are advantages to buying this coverage when you are younger. Premiums are much lower and you are more apt to be healthier. Don't procrastinate any longer the quotes are free the care isn't. Doesn't it make sense to transfer the risk to an insurance carrier rather than tapping into your retirement or children's inheritance? Would you rather be your own insurance company? The choice is up to you!
What LTC Covers
It is important to understand that Long Term Care covers a broad spectrum of services.
They are divided into five categories:
Home Health Care - pays professional and informal caregivers for assistance in the home.
Caregivers include: Home Health Aides, Personal Care Attendants & Certified Nursing Assistance. Assistance includes help with meals, laundry, light housekeeping, bathing & personal hygiene. These Caregivers usually spend 4-8 hours daily. These services usually have a 4-hour minimum. Cost range $14 to $27 per hour.
Professional Caregivers include: Registered Nurses, Physical, Occupational & Speech Therapist. These are licensed and trained individuals who come into the home for a specific task usually an hour or so then they leave. This care can range anywhere from $80 to $200 per hour.
Community Care - allows patients to stay at home longer and provide a break for the primary caregiver.
Community Care includes adult day care. Adult Day Cares cost range from $50 to $150 per day (8hr shift).
Respite Care - Is short term care designed to provide temporary relief to the caregiver who cares for the patient in the home. It allows the primary caregiver a break from 7 to 21 days at a time. Respite Care cost will depend on whether you are using a nursing home or assisted living facility.
Assisted Living Facility - provides apartment or condominium type settings and 24-hr assistance with personal & custodial needs for patients who have lost 1 or more of the Activities of Daily Living. Assisted Living Facilities are fast becoming the top choice for Long Term Care because they allow the residence to remain as independent as their condition or illness will permit. Assisted Living Cost can range from $1,800 to $4,000 per month depending on the services or where you live.
Nursing Home Care - the Highest Level of care you can receive. It provides daily 24-hour skilled, intermediate and custodial care. The Level of Care at this point is greater than the need for home or at an assisted living facility. The daily cost for this care can range from $196 to 245 per day depending where you live.