Nearly 63% of Americans above the age of 65 require long-term care. If your savings were to bear its costs, you would have to shell out an average of $140,000 per annum. Such an expense can cause a significant financial drain.
Long-term care(LTC) insurance can help you prepare for all such future needs, like assisted living, in-home care, or nursing home costs. However, only a small number of Americans are covered because there are many myths about the coverage.
Let’s bust a few myths about long-term care insurance to understand it better:
Myth: “I don’t need long-term care insurance as I am covered by Medicare/Medicaid.”
Fact: The statement above is one of the biggest myths about long term care insurance.
At a nursing home, Medicare pays for 100 days of LTC, of which the average stay is only 22 days. Further, it covers a mere 12% of LTC expenses nationally and does not pay for daily living activities such as bathing, dressing, toileting, etc.
On the other hand, while Medicaid does offer long-term care services, you need to satisfy several state eligibility criteria. These requirements are based on your income, level of assistance required, and other such parameters.
Myth: “I’m too young to worry about long-term care insurance. I have other financial liabilities.”
Fact: It is never too early to plan for your future.
You can customize your long-term care insurance premiums and payment options to meet your current budget. Plus, premiums depend on your health, family medical history, age, and gender. The sooner you start, the better your chances to obtain the insurance and at a reasonable cost. Most importantly, health is highly unpredictable, so it is always better to be safe now than sorry in the future.
Myth: “I have a family; they will take care of me.”
Fact: Does your family know that you expect them to care for you? Do they live nearby? Which family member can offer you dedicated assistance? If required, will they quit their job to care for you?
In some instances, offering long-term care may take a toll on them, and they may have to bear the mental, emotional, and financial repercussions. Such considerations may make you realize that maybe your family is not well-equipped or prepared enough to offer your long-term care.
We hope that these long-term care insurance facts have shed some light on its importance. Regardless of who you are purchasing the insurance for, it will act as a protection from any future financial implications arising out of the need for long-term care. Do you have additional questions about long-term care insurance coverage? If so, then contact the experts at Udell Family Insurance. We are ready to assist you with all your coverage needs today.