Long-term care insurance is a type of insurance coverage that is designed to help cover the costs associated with long-term care services, such as nursing home care, assisted living facilities, and in-home care. It is intended to provide financial assistance when individuals require extended assistance with activities of daily living due to chronic illness, disability, or cognitive impairment.

The importance of long term care insurance lies in the potential high costs of long-term care services.

These costs can quickly deplete one’s savings and assets, jeopardizing their financial security. Here are a few reasons why it is important to protect assets through long-term care insurance:

• Cost of care: Long-term care services can be extremely expensive, especially if you require specialized care or an extended stay in a nursing home. Without insurance, these costs can be a significant burden on your finances and potentially exhaust your savings.
• Asset preservation: Long-term care insurance helps safeguard your assets from being entirely consumed by long-term care expenses. By paying for a portion of the care costs, it helps preserve your savings and assets, allowing you to pass them on to your loved ones or utilize them for other purposes.
• Independence and choice: Long-term care insurance can provide you with the financial resources needed to choose the type and quality of care you desire. It enables you to have more control over your long-term care decisions and potentially access a wider range of care options.
• Reduced burden on family: Long-term care needs can place a significant burden on family members who may need to provide care or arrange and coordinate care services. Having insurance coverage can alleviate some of this burden and provide professional care services, allowing your loved ones to focus on providing emotional support rather than being overwhelmed by caregiving responsibilities.
• Peace of mind: Long-term care insurance offers peace of mind, knowing that you have a financial safety net in place in case you need long-term care. It provides reassurance that you won’t have to solely rely on your own savings or burden your family with the high costs of care.

It’s important to note that the suitability and affordability of long-term care insurance vary for each individual, depending on factors such as age, health, financial situation, and personal preferences. Consulting with a financial advisor or insurance professional can help you assess your specific needs and determine whether long-term care insurance is a suitable option for you. Doesn’t have to take place in a nursing home. 

Activities of Daily Living (ADLs):

• Bathing
• Eating
• Dressing
• Walking
• Toileting
• Grooming

The inability to perform 2 or more of the above ADL’s without substantial assistance can trigger a long term care policy to pay out benefits.

Dementia (lack of cognitive ability) is seen as a standalone trigger for a long term care policy to pay out benefits.

Instrumental Activities of Daily Living: (IADLs)

• Doing Laundry
• Paying bills
• Preparing meals
• Shopping for groceries
• Managing chores and cleaning

There are several types of long term care insurance options available.  Contact Karin with any questions about long term care insurance and how it works.