Long-Term Care insurance is a necessary part of Long-Term Care Awareness Month created by Congress when the resolution was passed. Why was this passed by Congress? The government recognizes that millions of individuals tap into hard-earned savings to pay for their long-term care unless they have a plan in advance for handling these large expenses. Advance planning for this expense will help protect caregivers' health, financial security and quality of life.
Many people think that the government (Medicare) will take care of their long-term care needs.?Medicare does provide long-term care for people who are over 65 and covered by Medicare, but only about 5-8% of nursing-home care given is paid for by Medicare. This type of funding is often quite restricted: it may pay only for medically necessary, skilled care given in a nursing home, and the benefit periods are limited to 100 days each.
Today, no one knows for sure what role Medicare will continue to have in helping seniors with their long-term care needs. With the baby boomers coming into the system in such large numbers, where will the money come from to support everyone??Do you take the wait and see approach and do nothing? Or should you approach this as you do for your other risks such as auto, home and health insurance?
The risk of needing long-term care is greater than auto, home or health insurance. The choices you have to cover this risk are:
1.?strong>Self-insuring- Using what financial resources you have at the time. You will be paying for everything out of your own pocketbook. The current weakening of the economy has made this option more difficult for most.
2.?strong>Family- Will any family member be willing to give up their current lifestyle in order to provide care for you? Most people do not consider the negative impacts on their social life or physical, mental or emotional health before volunteering to become someone's caregiver.
3.?strong>Government- Medicare/ Medicaid (Welfare)
4.?strong>Long-Term Care Insurance- Long-term care insurance is not simply the care you might need at a nursing home near the end of your life. There are many different settings where you may receive care with your long-term care insurance policy.
Here are some of the care-facility options these policies offer:
- At-home care
- Home modification
- Assisted living/continuing care
- Alzheimer's/group-home care
- Adult day care
- Respite care
- Nursing-home care
We cannot deny the fact, that with modern medicine, we are living longer. The longer we live, the more certain we are to need some kind of long-term care. We can expect our current population to need long term care much sooner than previous generations, due to an increasing rate of obesity, diabetes and heart disease in our young.
Long-term care insurance is a much cheaper route?than stashing away at least $800/month every month until you need?to draw on the money. Will this money be earning 5% compounding interest??And what if you would need care tomorrow? Who knows what the costs will be 20-30 years from today? When purchasing a long-term care insurance policy, if you are under 75, make sure you get inflation protection.