Advantages of Having Long Term Care Insurance

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With America’s population aging, more and more consumers are buying long term care insurance.  According to one study, 70% of all Americans age 65 and older require some form of long term care and, on average, need this care for 3 to 5 years.  Long term care not only includes caring for those in a nursing home but also includes assistance with daily living at home such as help with dressing, bathing, using the bathroom, eating and getting in and out of bed.  In deciding whether you need to invest in this type of insurance, here are some of the advantages to consider:

Long Term Care Insurance Will Give you Choices

With this coverage, you will be able to maintain more control over decisions about your care.  If you are unable to pay for care yourself, you will be less likely to have enough money to stay at home.  If you end up in the nursing home as a private pay resident, you will have more, better places to choose from than if you were a Medicaid payee.  As a private pay resident, you will enjoy the freedom to choose a facility that meets your needs.

Avoiding Medicaid

The average cost of a resident’s stay in a nursing home in the United States is $7,500 per year so pay privately without long term care coverage for most people, in the long term, is impossible. If you do not have sufficient funds to pay privately for a nursing home, you will have to apply for Medicaid, a poverty-based program funded by the federal government.  As a part of the Medicaid application process, you have to produce extensive financial records and you have to deplete your assets before you are eligible for the program to pay your expenses, leaving very little for your legacy. 

Staying Independent

Although some people believe their family will provide for their long-term care, in many cases, they will not want them too.   Personal acts such a bathing or using the bathroom are not moments most people want to share with their children.  It will be a great relief to know you are not a burden, emotionally or financially, on your family in the event you are unable to care for yourself.

Peace of Mind

For most people, it is a tremendous relief to know that they have taken this vital step to make sure they have the most options and will receive the best possible care if they need long term care.   Being able to avoid applying for Medicaid or having family member take personal care of you, for most people, is well worth the price of this coverage.

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