Long Term Care Insurance

Obtaining a long term care insurance quote is much more important than many realize. Did you know that it is estimated that over 40% of Americans will spend at least some amount of time in a nursing home or other type of skilled nursing facility (SNF)? This need for long term care (and some form of long term care insurance) could come about because of a disability, a prolonged illness, or just simply old age.

Many Americans underestimate both the probability that they will need some form of long term care (LTC) and also the cost that they will be responsible to bear for their long term care. Learning some of the basics of what long term care is, how much it can really cost, and how you can be best prepared with adequate long term care insurance is invaluable to all savvy insurance shoppers and really all Americans. If you take the time to educate yourself now and prepare before it is too late then you will be well on your way to a safe and stress free retirement – no matter how old you may be!

So what does long term care insurance really cover? How can you best interpret the long term care quote that you may receive from your insurance agent? What exactly does Medicare and Medicaid cover as related to disability expenses and long term care expenses?

It is important to keep in mind that the average annual cost for a long term care facility in the United States is a little bit over $40,000 (with some areas of the county averaging as high as $60,000 per year). This amount seems even higher when you consider that Medicare and Medicaid combined will pay less than 5% of all long term care costs (not that one would want to rely on Medicaid to pay for any long term care costs or medical expenses in the first place because after all – Medicaid will only pay out a benefit once you are “poor” enough. This means that you will first have to exhaust your other resources [retirement plans, savings, etc.] which would make you ineligible for Medicaid benefits due to certain assets and income limits).

Long term care health insurance provides for care for people who are unable to perform the basic activities of life. The basic activities of daily living (commonly called ADL’s) include dressing, bathing, getting in and out of a chair/bed, using the bathroom (continence), eating, walking (sometimes referred to as ambulating), and taking care of personal hygiene. Long term care insurance can cover home care that is either full time or part time with assisted living helpers that could include a caregiver, companion, nurse, housekeeper, therapist, private duty nurse, or even helpers in an adult daycare facility, respite care facility, or hospice care facility.

There are two main types of long term care policies: non tax qualified long term care insurance (sometimes called traditional long term care insurance) and tax qualified long term care insurance. The premiums paid for a tax qualified long term care insurance policy may be eligible for an income tax deduction (the amount of the tax deduction is limited by the IRS and depends on the age of the insured). Almost all long term care insurance sold today are of the tax qualified variety. The benefits paid out from a long term care policy are generally income tax free.

Take just a few moments and use our free quote finder to compare long term care rates and plans from multiple long term care insurance companies. Get free long term care quotes now!