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According to official Medicare statistics, 12 million older Americans will need long-term care by 2020. Sixty percent of all Americans, age 65 and over will require care in a convalescent or nursing facility sometime during their lifetime as cited in the Congressional Report of June, 2001. What exactly is long-term care? The phrase long-term care represents a variety of medical and non-medical services that help people get through their day-to-day lives when incapacitated by age or illness. Care can mean physical therapy or nursing care, but it also includes help with daily activities, like walking, eating, bathing, dressing, toileting, getting in and out of bed, and more. The thing about long-term care is, it’s expensive. Long-term care from a home health aide runs $20 an hour, and a private room in a nursing home costs an average of $87,000 a year. The price for these services is bound to go up in years to come. That’s why long-term care insurance is so important – without it, you could see your retirement savings diminish quickly. What does long-term care insurance cover? Well, that depends on your policy. Most policies cover the assistance with fundamental, day-to-day needs over an extended time. While Medicare will pay for medically necessary skilled nursing facilities or home health care for a limited time, they do not pay for long-term care such as an assisted living center or custodial care at home for assistance with activities of daily living. Without long-term care insurance, you would have to rely of family members or friends for assistance or pay for it out-of-pocket. Long-term care insurance pays for custodial care such as a home health aide or caregiver, a nursing home, or an assisted living facility. What should you look for in long-term care insurance? One aspect to consider is the policy’s elimination period -the period between when you file your claim and when the insurer starts paying your expenses. The elimination period can range from 20 to 90 days or more. As with a health insurance deductible, the longer your elimination period, the lower your insurance premium rates. Keep in mind that you’ll have to pay your own out-of-pocket care costs during the elimination period, and these costs could equal hundreds of dollars a day. Another factor in long-term insurance is the length of coverage. Many policies cover the costs of long-term care for two or three years, but there’s a good chance you’ll need long-term care for a longer duration. The average person who receives long-term care needs it for four years. When you go to purchase your long-term insurance coverage, you will want to discuss the policy term that best fits your anticipated needs. For long-term care insurance and other insurance products for residents of Utah, take a look at www.thomasinsure.com.
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