How would you pay for long term care services such as a visiting nurse, assisted living, therapy or a personal care aid if you needed them? Could you easily pull $200,000 from your retirement nest egg to pay for three- years in a nursing home? According to the Congressional Budget Office, “Financing Long-Term Care for the Elderly,” April 2004, one year in a nursing home or 24-hour home care can cost more than $66,000 today, and that cost continues to rise. Long term care (LTC) insurance is the one financial tool that can help you prepare for these costs in the future. With this protection, you will be able to maintain more independence should you need long term care. You may be able to stay in your home longer, and you’ll have more choices about your long term care services and providers in the future. That’s why it is critical to make a long term care insurance policy part of your overall financial strategy.
While most consumers know something about long term care and can access information about the topic, several misconceptions surrounding long term care insurance still persist. Additionally, there are a number of tips you should think about when buying the product. Let’s look at two of the most common fallacies about long term care insurance and two helpful tips to consider when putting together your long term care plan.
Misconceptions One pervasive misconception is that other insurance and government programs will cover long term care costs. Long term care usually involves non-medical assistance with basic daily activities like dressing, bathing or using the toilet. In fact, many long term care services that help with these tasks are not typically covered by other kinds of insurance, including health and disability insurance. Only long term care insurance policies help cover the day-to-day assistance you need when you have a chronic illness, disability or cognitive impairment and need help with activities of daily living such as eating, bathing, or toileting.