Long Term Care Insurance: What it is and important things to know

Published October 13th, 2022 by Manchester House Assisted Living

Long Term Care Insurance: What it is and important things to know
When thinking of insurance, long term care insurance is probably not one that first comes to mind, however, long term care insurance can prove beneficial for completely covering or significantly reducing the cost of long-term care. Long term care (LTC) refers to any personal assistance needed to maintain an individual’s quality of life as they age. Aging is an inevitable part of life; thus, long-term care insurance is something that everyone should consider as it will likely be needed at some point in one’s life. Below is a breakdown of important things you should know about long-term care insurance.

What is long term care insurance and what does it cover?

Long-term care insurance covers the cost of long-term services that include custodial and skilled care services. Custodial care consists of non-medical care that can reasonably and safely be provided by non-licensed care givers such as nursing assistants. Custodial care involves help with activities of daily living such as bathing, dressing and toileting. Skilled care is medically necessary care that can only be provided by or under the supervision of licensed professionals. Examples of skilled care services include wound care, intravenous therapy, and physical therapy. The terms and conditions of coverage depend on an individual’s policy, however long-term care insurance will generally cover services in various settings that include an individual’s home or another facility such as assisted living or nursing home. Each insurance company sets their own rate and terms of their policies.

What age should one get long term care insurance?

Some insurance carriers might not provide coverage for individuals with pre-existing medical conditions. With that in mind it would be best to consider purchasing LTC insurance coverage well before it is needed. The most suggested and cost effective time to purchase LTC coverage is between the ages of 50 to 65. According to the Administration of Community Living, individuals turning 65 years old have almost a 70% chance of needing some type of long-term care service and support in their remaining years. The duration and level of care will vary from person to person. On average, women typically need care for a longer duration than men. While a third of individuals age 65 and older may never need LTC, twenty percent will need LTC for longer than five years (ACL, 2020).