Long Term Care
Long Term Care is the assistance you will need for an extended period of time if you develop a chronic illness, disability, or cognitive impairment, such as Alzheimer’s disease. Long Term Care differs from medical care received in a hospital or provided by a doctor, which usually is covered by private health insurance or Medicare.
Long Term Care can be very expensive. Due to the rising costs of Long Term Care services, the need for Long-Term Care insurance is essential. Studies show that the average stay in a nursing home is 2 to 3 years. The average cost annually is $30,000 to $60,000. Depending on the type of care one may need, one year of care in a nursing home may cost, on average, over $40,000. Home care is less expensive but still very costly.
The American Council of Life Insurers (ACLI) released a report that shows consumer and business awareness of the importance of long-term care insurance is now prompting specific action to secure and provide this vital form of insurance protection. “‘Passing the Trust to Private Long-Term Care Insurance’ reports that private long-term insurance is no longer just a hope of the future. It is becoming a mainstream tool for long-term financial planning,” says ACLI Senior Director Lynn Boyd. The report shows:
- Women baby boomers are buying this insurance as a result of their experiences in caring for people needing long-term care assistance.
- Almost half of Americans 45 and older have discussed their possible need for long-term care with their adult children.
- At least 22 states are offering long-term care insurance to their employees.
- More than one-third of large companies are offering long-term care insurance as an employee benefit.
- Smaller employers are offering coverage as well.
- Life insurers have paid out more than $11 billion in long-term care benefits.
- In addition, the report shows that consumers are buying long-term care at younger ages; that workers, including blue-collar workers in many industries, are enrolling in employer-sponsored long-term care plans; and families with strong cultures of caring for elders are buying long-term care insurance in growing numbers.
While the need for long-term care planning is clear, a vast majority of adult Americans still go without coverage. Unless people are encouraged to plan for their future needs, soaring costs and increasing demand for long-term care services could deplete personal savings and exhaust government entitlement programs.
To reduce this potential financial exposure, Long Term Care insurance is an inexpensive way to provide financial protection to your family.
Kilbride & Harris Insurance Services, LLC provides our clients with options to meet their Long Term Care Insurance needs and protect themselves from this costly expense.
Contact us to discuss your specific needs.