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Learn about Long Term Care

Finding Long Term Care Protection

At least 70% of people over age 65 will require some type of long term care1. Long Term Care insurance could be an important part of your strategy for managing the cost of care. A variety of Long Term Care policies are available and they cover a range of care. Some policies cover certain nursing home costs, some cover at-home care, some pay for adult day care and others blend many different types of coverage. The key is to understand precisely what a policy covers before you consider purchasing Long Term Care insurance.

Additional factors to consider include:

Budget:
Remember that LTC Insurance premiums often increase as time passes. Review your budget before buying. If you suddenly cannot afford your premiums, you may not be able to recoup what you have already paid into your policy.

Know Your Limits:
Long Term Care Policies typically have limits on the coverage they provide—often in the form of capped total dollar amounts, capped per-day costs or capped length of coverage. Policy holders are usually responsible for paying the difference. According to information on LongTermCare.gov, in 20102:

  • Per-day cost of a semi-private room in a nursing home was $205. A private room cost $229 per day.
  • Monthly cost of care in an assisted living facility (a one bedroom unit) was $3,293.
  • The hourly rate for a home health aide was $21.

The Big Picture:
It is important to consider how Long Term Care can affect your retirement, as well as your financial and estate plans. Consulting with a Financial Advisor may help you understand the positives and negatives of purchasing a policy. Talk with one of our advisors today.

1. DHHS, 2008. Stats taken from longtermcare.gov Administration on Aging.
2. http://longtermcare.gov/costs-how-to-pay/costs-of-care/
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