What is Long-Term Care Insurance?

Long-term care insurance can help preserve the assets you've worked so hard to build by planning for the costs associated with long-term care. As the baby boomer generation ages, statistics indicate a growing need for long-term care. A majority of people who attain retirement age will require long-term care at some point in their lives. But the need is not limited to retirees. Many individuals receiving long-term care services are working age adults, as a result of chronic illnesses, injury or disability.

In addition, many Americans are currently dealing with the emotional and financial impact of providing for the long-term care needs of a family member. In many cases, in-home care is often provided by a relative who may be burdened with both childrearing as well as elder care responsibilities. And while the services of a home health aide may be enlisted, the average annual cost of home care is growing, along with nursing home care.

Have I saved enough to pay for these types of expenses?

Even if you did, would you want to spend your savings on long-term care?

Unfortunately, some people believe that their health insurance, Medicare or Medicaid will foot the bill for long-term care. But most health insurance plans normally cover only acute care that is required for a short period of time. Medicare offers limited benefits for those who receive care in a skilled nursing facility following a hospital stay. Generally, Medicare recipients are disabled or have reached full-retirement age as defined by the Social Security Administration. Medicaid is a government program designed to help those in dire financial need. In most cases, almost all of your assets and your spouse's assets must be depleted before benefits will be paid, and even then Medicaid will not cover most home care, which is the setting many people prefer.

That's why many people seek to protect their assets by purchasing long-term care insurance. With long-term care coverage, you may be able to defray the expenses of extended care without placing your income, retirement nest egg and other investments at risk. In addition, long-term care insurance can provide for increased control over your care choices. Insurance can cover expenses associated with care received in a nursing home, assisted living facility, adult care center and at home.

Do you have a question? Are you looking for more information?

We have answers. Our Financial Professionals have the skills, knowledge and experience to guide you in crafting and implementing an effective plan designed to reflect your unique investment and retirement goals – or simply answer any questions you may have. Let one of our Financial Professionals walk you through the process every step of the way and review which options are best suited for you to help you feel more secure and worry a little less.