What is Long Term Care Insurance?

Long Term Care Insurance is a commodity that is sold in the United States. "Long Term" does not necessarily mean for a long period of time. It is, however, chronic care meaning that it is "full-time" care. A person may need this type of coverage if they are recovering from a surgery, a hospital stay, or an illness that lasts only a few months. It provides an individual, any individual, the assistance they need to carry out daily living activities. Those who require long-term care are sick in such a way that they are unable to perform the basic activities of every day life. These include things such as getting in and out of bed, bathing, dressing, preparing meals, eating, using the toilet, walking, and taking medications.

Long Term Care Insurance covers a wide range of medical and non-medical support for patients with degenerative diseases such as Parkinson's, cognitive disorders such as Alzheimer's, or prolonged illnesses such as cancer. Long Term Care can be provided in several different surroundings including nursing homes, assisted living facilities, adult day care, and even in a patient's own home.

Long Term Care Insurance provides for the cost of care beyond a period that is predetermined and is usually not covered by health insurance companies, Medicare, or Medicaid. Companies like Medicare don't pay for full-time care because the sort of assistance required by those who may need this type of insurance is considered to be "non-skilled" care. Carrying out daily living activities does not have the need of special skills.

There are four main ways in which to pay for Long Term Care: Cash, Medicare, Medicare, Medicaid.

Paying with Cash
If you are comfortable financially this is the best option for paying your medical bills. Getting medical care in your own home may be less costly than staying in an assisted living facility. Living in a nursing home can range anywhere from $50,000 to $100,000 per year. It is also important to know that the average stay for an adult day care is approximately two and a half years.

Medicare
Medicare will only pay for services that include things such as outpatient treatment in a hospital setting, doctor's appointments, and minimal care at home.

Medicaid
Medicaid is considered a welfare of sorts for the elderly. Benefits only start after the greater parts of your assets have already been used up.

Long Term Care Insurance
Long Term Care Insurance usually covers services that include assisted living facilities and nursing homes. It will let the insured patient pay a premium that is reasonable so that they are protected in the event of an adversity.

As we learn to take care of ourselves physically through our choices in diet, exercise, and other factors that affect our health our chances for living longer goes up. Unfortunately, as we age, some of us will still suffer from illnesses that are simply unavoidable. Americans over the age of 65 are now at a 40% risk of having to enter an assisted living facility and may need the use of Long Term Care services.

Sources

Matthews, Joseph. Long-Term Care: How to Plan & Pay for It. Berkeley, California: NOLO; 7 edition, 2008.

Rowley, Stephen F. The Consumers' Guide to Long Term Care Insurance. Bloomington, IN: AuthorHouse Publishers, 2004.

Shelton, Phyllis R. Long-Term Care: Your Financial Planning Guide. New York, NY: Kensington; Revised edition, 2003.