Insurance for Long-Term Care
Long-term care is the kind of assistance that helps with daily personal activities such as hygiene, meals or perhaps physical therapy.
This kind of care usually is the result of a disabling medical or physical condition. Services can include care provided at home as well as services in a nursing home.
Senior Focus has studied long-term care issues extensively. We can help individuals decide whether or not insurance is appropriate for them, and advise about how to select a policy from among the many available in our community.
How do I know if I'll ever need long-term care?
Anyone may need long-term care services. An accident or sudden, serious illness can create a need for services, as can the slow progression of chronic diseases such as rheumatoid arthritis, Alzheimer's Disease or Parkinson's Disease. Age or frailty may contribute. People who live to be very old are more apt to need long-term care.
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What long-term care options are available at home?
Only a small percentage of people who need long-term care live in nursing homes. Many services and programs are available in the community to support older people in the most independent living situation possible. These services can include: Home health care; personal care; homemaker services; hospice; respite care; Adult Day Health care; social day care.
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What if I need more support than I can receive at home?
Home care is appropriate for people who have additional assistance from family or friends. When such support is not available, the individual may need to move to an assisted living facility or residential care facility to have his or her needs met. These facilities provide room and board plus supervised personal care. If a higher level of care is needed, the individual may have to be cared for in a skilled nursing facility.
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How much will long-term care cost?
Nursing home care in California typically costs between $80 and $120 per day. Residential care facilities cost $50 to $65 or more per day. A live-in companion/homemaker can cost from $80 to $155 per day. If a higher level of skill is needed, the cost will be higher. Hourly fees for a companion/homemaker range from $8-$18 per hour.
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How will I pay for long-term care?
People with incomes high enough to afford paying $30,000 to $50,000 a year for long-term care probably don't have to worry about their long-term care needs. Relying on your investments or annuities is another way to pay for long-term care. However, this may not be enough if you need care over an extensive period of time.
Medicare only pays about 4 percent of nursing home costs, and it does not pay for custodial care. Most of the care provided in nursing homes is custodial care. Medicare also restricts payment for in-home care. Services must be furnished by a home health care agency that participates in Medicare, and coverage does not include help with activities such as laundry, shopping or other personal services.
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What is long-term care insurance?
Long-term care insurance is any insurance policy that pays for care in a facility that is NOT an acute care unit of a hospital. This includes nursing homes and personal care homes, and facilities that provide the following kinds of care: residential, convalescent, extended or skilled nursing. It also includes home care or home health care, personal care, homemaker services, hospice or respite care. Lastly there is community based care which is Adult Day Health care or hospice care.
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How much does long-term care insurance cost?
The cost of long-term care policies varies according to the type of policy and coverage provided. Policies with only nursing home coverage are less expensive than those that cover both nursing facility care and home/community care. Some of the factors which influence cost include age at which you purchase coverage, the length of waiting time you select before you begin to receive benefits, the benefit dollar amount and policy options you purchase, the state of your health at time of purchase and special features such as inflation.
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What factors should I consider before purchasing a policy?
Carefully consider your future ability to pay the premium should it increase. If your assets are less than the cost of a year in a nursing home, long-term care insurance is probably not a good idea. If you already qualify for Medi-Cal or would spend your assets within a few months, you do not need long-term care insurance.
Since premiums are based on age, the older you are when you purchase coverage, the more expensive the premium will be.
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Contact
Call (650) 696-5600 to register for the next LTC class.