Long-Term Care

The good news? People are living longer. The bad news? This means in addition to needing more savings for retirement, individuals also face a higher likelihood of developing a long-term care condition.

According to the Department of Health and Human Services, two out of three people will eventually require nursing, home health, or assisted living care, whether temporarily or permanently. These needs can greatly impact your quality of life – and wreak havoc on your retirement funds.

Unlike traditional health insurance for acute needs, LTC insurance is designed to cover services and support over time. Your Medicare coverage or Medigap policy may help with some LTC costs; however, this generally applies in temporary situations under very strict constraints.

Long-Term Care Insurance
LTC insurance benefits vary across carriers and policy types. However, most LTC policies cover services such as:

• Expenses associated with assisted living
• Home health and visiting nurses
• Assistance with activities of daily living
• Nursing home care

This includes personal and custodial care in a variety of settings such as your home, a community organization, or another facility. Long-term care insurance policies typically reimburse policyholders a daily amount up to a pre-selected limit for services to assist them with activities of daily living such as bathing, dressing, or eating.

An LTC policy can help protect your health and assets from the cost of difficult health conditions and may also give you tax benefits. Premium payments for qualified LTC policies may be applied toward your medical expense floor on your federal income tax return.

Long-term care coverage is not just limited to stand-alone policies. It can also be found as an additional feature, or rider, in other products such as a base life insurance or annuity contract.