Looking for quick answers? Browse frequently asked questions about long term care and long term care insurance.
Long Term Care Questions
Long Term Care Insurance Questions
- What is Long Term Care Insurance?
- Who Needs Long Term Care Insurance?
- How Does Long Term Care Insurance Work?
- When Should You Buy Long Term Care Insurance?
- How Much Does Long Term Care Insurance Cost?
- Who Sells Long Term Care Insurance?
- Can I Get Long Term Care Insurance If I Have a Pre Existing Condition?
- Should I Cancel My Policy If I Can’t Afford the Premium?
- What Happens if I Don’t Use My Long Term Care Insurance?
- Do I Need Inflation Protection?
- Can I Share My Policy With my Spouse?
Long Term Care Answers
Long term care is a set of medical and non-medical services and support given to individuals who cannot take care of themselves because of chronic illness, disability or sudden impairment.
According to research, around 70% of Americans 65 and up will need long term care. Also, around 41% of working adults younger than 65 will require care due to illness, injury or disability.
3. What are the 6 Activities of Daily Living?
Activities of daily living or ADLs are everyday activities that people do without help. The six activities of daily living are as follows: eating, bathing, dressing, toileting, continence and transferring.
In addition to ADLs, there are also other supports and services that assist people in completing their daily tasks, which are referred to as Instrumental Activities of Daily Living or IADLs. There are six basic IADLs: household chores, medication management, meal preparation, grocery shopping, making phone calls and pet care.
4. Where Can You Receive Long-Term Care?
Long term care is provided at home by family or a caregiver, or inside long term care facilities such as nursing homes, assisted living facilities, adult day care and CCRC.
Nursing Homes
Nursing homes are defined as licensed facilities that provide 24-hour care and a wide range of services for individuals with chronic illness and those who need a much higher level of care than what home care and care communities offer.
Assisted Living Facilities
Assisted living facilities give seniors a little bit of independence while providing 24-hour supervision to residents, medication management, laundry and housekeeping services and recreational activities as well.
Adult Day Care
Adult day care helps family members take care of their aging loved ones during the day while they attend to their day-to-day responsibilities.
Continuing Care Retirement Communities (CCRCs)
CCRCs are private apartments or independent living units that provide social and housing-related services to seniors.
5. How Long Will You Need Care?
On average, a man would need long term care for about 2.2 years while a woman would need 3.7 years of long term care.
The average length of stay in a nursing home is believed to be around 835 days or a little over than two years. However, it is a different story for people with cognitive condition that would stay in a nursing home for 5 years.
The average length of stay of aging individuals in assisted living facilities is 29 months or around 2.5 to 3 years.
6. How Much Does Long Term Care Cost?
The cost of long term care varies in every state. The annual average cost of a private room in a nursing home costs $100,379 while a semi-private room costs $88,348.
The average annual costs of other long term care facilities in U.S states are as follows:
- $46,350 annually in a one-bedroom unit in an assisted living facility.
- $18,746 annually in an adult day health care.
- $49, 372 annually for homemaker services.
- $50,668 annually for home health aide.
If you’re looking for the cheapest long term care in the United States right now, check out this infographic on the top 10 cheapest states for long term care.
7. How Do You Pay for Long-Term Care?
You can pay for long term care using a private insurance like long term care insurance, or hybrid policies, or through self-insuring, through annuities, trusts or reverse mortgage.
Long-Term Care Insurance Answers
1. What is Long-Term Care Insurance?
Long term care insurance helps pay for the cost of long term care facilities and services of people with chronic illness, cognitive condition, injuries and various disabilities.
2. Who Needs Long Term Care Insurance?
People who wish to protect their assets, savings, resources and family members from the devastating cost of long term care needs long term care insurance.
This is designed to provide protection to long term care recipients who are usually 65 years old and above.
3. How Does Long Term Care Insurance Work?
Long term care insurance starts paying for benefits when you can no longer do two or more of ADLs and you already passed the elimination period stated in your policy.
Benefit triggers are described as the qualifying events to become eligible for your policy benefits. This will only happen if you either have a cognitive condition like Alzheimer’s or Dementia, or you can no longer perform two or more of the 6 Activities of Daily Living.
Elimination period is the length of time you need to wait after a benefit trigger occurs before your long term care insurance starts paying benefits.
4. When Should You Buy Long Term Care Insurance?
Buying long term care insurance as early as in your 40s or 50s can save you money on premiums compared to those who will buy in their late 60s.
Today, there are approximately 21% of Americans 55 year old and younger that own long term care insurance, while there are 52% of Americans between 55 and 64, have purchased a policy.
5. How Much Does Long Term Care Insurance Cost?
Long term care insurance cost varies depending on factors like age and health. The average premium for a 55 year old man is $2,166.14 based on a $200 daily benefit and 2 years of benefit period while a the average cost of long term care insurance for a 55 year old woman under the same circumstances is $2,813.13 annually.
The rate for women is more expensive compared to men because women outlive men, which makes them more likely to require long term care. Since the cost varies significantly from one insurance provider to another, it pays to get quotes and shop around first before making a purchase.
6. Who Sells Long Term Care Insurance?
Some of the top long term care insurance providers are Genworth, Mutual of Omaha, Transamerica, One America and Lincoln Financial Group.
Compare reviews and ratings of these insurance companies from A.M Best, Moody’s or S&P Global Ratings first to find a company that you can trust.
7. Can I Get Long Term Care Insurance If I Have a Pre Existing Condition?
Companies will not sell long term care insurance to someone who already needs help in ADLs, receiving narcotic pain medication, using a walker or a wheelchair or those with conditions such as AIDS/HIV+, Alzheimer’s, Parkinson’s Disease.
Check out the complete list of pre-existing conditions that prevent individuals from getting coverage.
But since insurance providers differ from one another, it’s best to ask the insurer first regarding pre-existing condition to verify whether you can get coverage or note.
8. Should I Cancel My Policy If I Can’t Afford the Premium?
Make adjustments to your policy like lowering your daily benefit amount, decreasing your benefit period, making your elimination period longer and adjusting your benefit inflation rates to make your premium affordable.
Dropping your policy is your last resort if you’ve already explored all your options and can’t still find a way to pay for your premiums. This article can give you more tips on how to deal with long term care insurance price hikes.
9. What Happens if I Don’t Use My Long Term Care Insurance?
You can get a percentage of the premiums you paid or your beneficiary can receive a death benefit equivalent to the total amount of premiums you paid through return of premium rider.
Here are the different types of return of premium rider.
Full Return of Premium
Full Return of Premium gives your chosen beneficiary a death benefit equal to the sum of the premiums you paid.
Return of Premium Less Claims
Return of Premium Less Claims only returns the premiums you paid less any claims or benefits paid.
Graded Return of Premium
Graded Return of Premium is the least expensive return of premium rider. Some insurers return a part of your premium up to age 75 while other insurers will no longer return your premium after age 65.
10. Do I Need Inflation Protection?
Having inflation protection increases your long term care insurance benefits each year to keep up with the rising cost of long term care. Without inflation protection rider the value of your policy decreases every year, which is risky since the cost of care increases every year.
11. Can I Share My Policy With my Spouse?
Instead of buying costlier individual policies, couples can opt for a shared care policy that can help them save more money in the long run. A shared care policy allows couples to share long term care benefits that they can share anytime.