Resources & FAQs
Frequently Asked Questions
1. What is long-term care?
Long-term care, also called custodial care, differs from skilled medical care in that it is not intended to make you well again. It is care that helps you bath, dress, eat, go to the bathroom or move about.
2. Does my health insurance cover long-term care?
No – traditional health insurance pays for skilled, medically needed care that is designed to make you well again.
3. What can I expect from Medicare and Medicaid?
Medicare is your health insurance when you reach age 65. Like your health insurance, it does not pay for long-term care. Medicaid will pay for care in a nursing home, but you must first qualify by using your income and spending your assets down to levels determined by the government. Medicaid generally will not pay for care at home or in an assisted living facility.
4. Why should I consider long-term care insurance if I already own disability insurance?
Disability insurance is meant to replace your income if you cannot work while long-term care insurance is meant to pay the cost of your care. Disability insurance generally ends when you reach age 65 or when you leave your job. Long-term care insurance stays with you forever until you need care.
5. What are the odds of needing long-term care?
Estimates are that almost one in two people will need long-term care during their lifetime. The odds of needing care increase the longer you live.
6. Why should I consider coverage now – isn’t long-term care for seniors?
Long-term care is not for seniors only. 40% of people currently using long-term care services are under age 65! Because long-term care can be financially devastating, more and more people are including it as part of their financial planning process.
7. How much does long-term care cost?
It depends on the type of care you need and desire as well as the geographic region of the country you live. Although nursing home care averages around $60,000 per year nationally, it is not uncommon for people to pay in excess of $100,000 per year for their care.
8. How much does long-term care insurance cost?
It depends on decisions you make with the help of a long-term care advisor. Premiums are locked in to the age you purchase and the amount you pay over your lifetime is always less the younger you apply.