According to the the United States Health and Human Services Department, 70 percent of all people in the US over the age of 65 will need an average of two years assisted care. As you can see, based on the data, there is a high probability you or your loved one will need some kind of personal assistance as you age.
Personal care services average around $20.00 per hour depending on your region and the companies providing the service. To give you an example, just four hours of personal care services at home, seven days a week, costs around $560.00 a week, or $2,240.00 a month. Assisted living costs an average $4,300 per month.
What Is LTCI?
Long Term Care Insurance is a particular kind of insurance specifically designed to help you pay for personal care services rendered at home, or in a facility. It can mean the difference between being able to have professional long term care, or needing to rely on your family and friends for care. It is important to note that Medicare and health insurance usually do not cover long term care. Purchasing LTCI means you will have choices regarding your independence and dignity as you age.
What Does LTCI Cover?
LTCI is specifically designed to cover activities of daily living. Generally speaking, these are the activities or personal care you need every day (think bathing, dressing, toileting, etc.). At least 2 ADLs are required for most LTCI policies to start to reimburse for care.
Generally, the earlier you get LTC Insurance, the less the premium will cost. The older you are when you buy the policy, assuming you can still get approved by underwriters, the more it will cost. Monthly premiums will vary, but you might expect to pay from $150-$200 per month depending on your health and other factors at the time the policy is purchased.
Who Is Likely To Use LTCI?
People who:
- Are Aging and need extra assistance with ADLs
- Live alone or who do not have family or friends able to help
- Have poor nutrition and who lack physical exercise or fitness
- Have effects of long-term illness such as stroke, COPD, dementia, Alzheimers, etc.
LTCI and Choices:
There are many Long Term Care Insurance companies offering different plans at different premiums. Researching them BEFORE you need care will save you time and money. To get started, you can visit Long-Term Care Information at: https://www.doi.gov