Long Term Care Insurance: What You Need to Know
Choosing a long term care insurance plan is perhaps one of the most important decisions you’ll make. Many people mistakenly assume their Medicare coverage includes long term care insurance. However, it only covers limited benefits related to brief rehabilitation stays. It’s important you understand what long term care insurance is and if you can benefit from purchasing this type of insurance.
Long term care insurance typically covers costs associated with care for the elderly or disabled. Long term care insurance typically covers the types of activities of daily living provided by Visiting Angels including personal care and grooming, housework, laundry, meal preparation and planning, and medication reminders. Our senior home care services are the type of activities most often covered by long term care insurance.
While many families utilize long term care insurance to pay for in home care services, this type of insurance will also cover care at assisted living facilities, nursing homes, adult day care centers, and hospice care. Many individuals who choose long term care insurance do so because they want to limit the financial burdens placed on their family members related to their care.
Long term care insurance is becoming more popular because of the need for elder care as baby boomers age. The U.S. Department of Health and Human Services reports that at least 70% of those over the age of 65 will require some form of long-term care in their lifetime.
While the cost of care insurance varies by where you live and how old you are, another important factor to consider is the inflation protection you choose. The gold standard is 5% compound inflation protection. However, many are opting for 3% or 5% simple or even 3% compound protection. As with any financial matters, we caution you to consult your financial advisor prior to choosing a long term care policy.
For more information about long term care insurance, we encourage you to visit the following websites: