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Long Term Care 101

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I know what you are thinking.  I have heard about this from every insurance professional that I know.  But what do you really know and what are you risking by not knowing?

The Basics – What Is Long Term Care (LTC)?

LTC is used to describe a variety of services provided to help meet your personal needs for an extended period of time.  LTC service providers help you to perform every day activities such as eating, bathing, dressing and bathroom activities.

What Does it Cost?

The national average cost for someone to provide these services to you is $21 per hour. A private nursing home room averages $248 per day or a whopping $90,520 per year.

How Do I Pay For This?

  • Family – care is provided by family members.  While this seems the logical choice, the caregiver is often needed 24/7 and often gets exhausted emotionally and financially.
  • Government Programs – Medicaid only applies if you meet strict financial eligibility requirements and Medicare only kicks in for rehabilitation or skilled care.
  • Savings – often get depleted way too fast.
  • Insurance – the only realistic option for most of us because you are paying with pennies on the dollar.  Also, the younger you are, the less it cots.

What are The Benefits of Insurance?

As discussed above, insurance often is much less costly and prevents you from depleting all of your family’s assets.  It also makes sense when assets of the family may not be liquid (for example if it is tied up in real estate or retirement plans).  Finally, it provides more control and choice, and removes a tremendous emotional pressure.


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