Do I Need Long-Term Care Insurance?

Long-term care insurance helps protect an individual’s assets by providing extra financial coverage in case they ever need assistance in completing their daily activities.

In a report from 2017, AARP revealed that approximately half of Americans over age 64 will need long-term care of some sort within their lifetimes. Although both health insurance and Medicare provide coverage for some long-term care-related costs, there is often a large expense left for the beneficiary to cover. Long-term care insurance helps protect an individual’s assets by providing extra financial coverage in case they ever need assistance in completing their daily activities.

Defining Long-Term Care insurance

Long-term care insurance covers costs associated with long-term services like nursing or daily assistance once a beneficiary loses the ability to complete at least two of six “activities of daily living,” These activities include maintaining basic hygiene, dressing oneself, eating, using the bathroom, getting in and out of bed, and walking around.

Health insurance and Medicare policies do cover a portion of these costs; however, long-term care insurance supplements those policies to further protect a beneficiary’s assets. Clients looking to purchase long-term care coverage should do so in their 40s or 50s to save money on premiums and to have a higher chance of approval. Long-term care insurance may not cover pre-existing conditions.

Long-Term Care Insurance or Long-Term Disability Insurance

When shopping for insurance, it can be hard to know which policy covers what. In fact, consumers regularly confuse long-term disability and long-term care policies. Though the two are often sold together to younger clients, there are some stark differences between the two that may help you determine if you need one or both.

For most families, losing a primary breadwinner’s income for even a few months may considerably change the way they live. Long-term disability insurance is specifically designed to protect an individual’s income should they become disabled for a long period of time or permanently. Disability insurance typically stops at age 65, so it is most beneficial for those who have some time before they plan to retire.

A Real Life Example

Peace of Mind for the Long Term

Long-term care coverage provides peace of mind for those worried about caring for their family should they or a spouse need long-term care services. In this true story from insurance awareness organization LifeHappens, Vernon Duckett recalls how long-term care coverage allowed his wife – who had been diagnosed with Alzheimer’s and Parkinson’s – comfortable, quality care after Vernon suffered his second heart attack.

“Knowing that this insurance was in place,” says Vernon and Helen’s son, Jeff, “made the transition much easier for him to know that she was getting good outside care, and that way he could continue on with his life and then help her with the remainder of her life.”

By purchasing long-term care coverage, Vernon and Helen were able to remain financially independent and stable throughout the duration of Helen’s illnesses. By knowing that Helen was well taken care of and that his financial assets were protected, Vernon was able to better cope with his wife’s condition.

Life Insurance Questions?

We hope this information on long-term care insurance is helpful.

If you’d like to learn how we can help you plan your retirement, call Empower Brokerage to speak to one of our Life and Annuity experts (888) 539-1633

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About Macee Hall

Originally from the snow-capped Rockies, Macee moved to Texas in 2016 to pursue an undergraduate degree in Strategic Communication. She currently serves as a writer and editor for Empower Brokerage, as well as the marketing manager for Preferred Senior Advisors. Macee is also working on her Master’s degree in management, and hopes to inspire others with her passion for telling stories through varied digital and print marketing efforts.

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