Am I already covered?

Many individuals mistakenly believe their long term care needs are already covered. However, long term care assistance is not usually paid for by health or disability insurance. In addition, government programs like Medicare and Medicaid do not cover long term care costs over long periods of time.

How would you pay for long term care if the need arose?

Medicare is a federal program that provides hospital and medical insurance to individuals age 65 or older, along with certain ill or disabled individuals. Home health care benefits are only available under certain conditions.

In general, Medicare might pay up to 100 days of care in a skilled nursing facility per benefit period – 100% for the first 20 days. From days 21-100 Medicare requires a co-payment. Benefits only become available after a three day hospital stay, if skilled care is needed.

Medicaid coverage is predominantly based on income and assets, and in a majority of states typically only covers care received in approved nursing homes. In states where Medicaid does cover home based long term care expenses, it is done on a restricted basis.

Personal income and assets, including your home, are frequently used to cover long term care costs, which can have a significant impact on savings.

Family members often assume the burden of care, and in some cases the financial responsibilities of providing care. Over time this can have a significant impact on their lifestyle, personal and work commitments, and physical and emotional well-being.

Long term care insurance allows individuals to be confident about their future by providing them with resources today to maintain choice, control, and independence later on in life. It is a cost effective way for individuals to take responsibility for their health and long term care decisions. In addition, it will assist in securing your family’s future and your own quality of life by protecting retirement savings.