Many people have never heard about Long-Term Care Insurance. ‘Long Term Care’, also known as ‘Long Term Services and Supports’, describes services a person would need to function in daily life. When you find yourself living with a disability, battling dementia or ALS, or recovering from a stroke, any assistance you need on a daily basis would qualify as long term care. Unfortunately, this custodial care is expensive, and Medicare or health insurance will not pay for it. The insurance experts at the Cafro Agency can answer your questions about Long-Term Care Insurance policies to protect your nest egg and your future.
Services that help people with the daily activities of living, like personal hygiene, meal preparation, household management tasks and duties, are custodial in nature. These nursing services are not classified as health care, per se. Custodial care, in contrast to skilled (nursing) care, are services are not covered by health insurance or Medicare. While Medicaid provides long-term services to those with chronic disabling conditions, it is only available for individuals who meet income and other eligibility requirements. Paying for custodial care services out-of-pocket is out of reach for the average person. According to the HHS Office of the Assistant Secretary for Planning and Evaluation Office of Disability, “While most people with LTSS needs will spend relatively little on their care, about one in six (17%) will spend at least $100,000 out-of-pocket for future LTSS.”
When you find yourself or a loved one facing long-term, or custodial care, you need information and good advice. Long-term Care Planning is all about how you are going to pay for services. The Associated Press-NORC Center for Public Affairs Research revealed in their 2016 Long-Term Care Poll that Americans Age 40 and Older are not well informed about the impact that long-term care will have on their personal resources. According to the poll, the majority of Americans age 40 and older continue to lack confidence that they will be able to pay for long term care, and few expect their current insurance to cover the costs of ongoing living assistance. Instead, many older adults expect to turn to Medicare or Social Security to support their care as they age, although these programs generally do not cover most long term care services or costs. Additionally, support is high for policies that help Americans save for long term care and for those that defray the costs of care giving.
Population projections expect that by 2040 the senior population will nearly double to about 22 percent. The majority of these seniors will require some form of long-term care – help with activities such as cooking, bathing, or remembering to take medicine – that can be provided in a home or institutional setting. How to finance the provision of high-quality services so that the costs are manageable for families and governments will remain a primary challenge. At present, misconceptions persist about how people will finance their long-term care, and the proportion of the public planning for future long-term care needs remains low. You may have a loved one who is in need of long-term care, now or in the near future. Talk to the experts at Cafro Agency Insurance and get your questions answered. Call 860-779-DAVE.
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Long-Term Care Insurance | New London County CT | Cafro Agency Insurance LLC