Long Term Care

Note: For the complete "Shopper's Guide to Long Term Care Insurance"
(click here)

What is long-term care?

Long-term care is assistance people need when they no longer can care for themselves. This may be due to an accident, disability, prolonged illness or the simple process of aging. Long-term care services include:

• Help at home with day-to-day activities, such as cooking, cleaning, bathing and dressing
• Care in the community, such as in an adult day care facility
• Supervised care provided in an assisted living facility
• Skilled care provided in a nursing home

What do long-term care services cost?

Long-term care services can be expensive, and costs vary widely based on where you live. Nationally:

• The average daily rate for a private room in a nursing home is $203, or $74,095 per year
• The average daily rate for a semi-private room in a nursing home is $176, or $64,240 per year
• The average hourly rate for a home health aid is $19
• The average hourly rate for a homemaker/companion is $17

How will I pay for long-term care services?

You have a variety of options when it comes to paying for the long-term care
services you need. Here are some:

• You can pay for these services out of your own pocket and risk depleting a lifetime of savings
• You can apply for Medicaid, but you will be required to spend down your assets to meet federal and state requirements in order to be eligible
• You can purchase an individual long-term care insurance policy

How can long-term care insurance help?

Long-term care insurance provides benefits to help you pay for the long-term care services you need when you need them. An individual long-term care insurance policy is an important part of your financial portfolio. It can help you to:

• Protect your assets so you have the money to do all the things you planned to do in retirement
• Preserve your estate so you have something to pass on to your heirs

Long-term care insurance also can give you peace of mind knowing you can:

• Remain in your home
• Receive the quality care you need
• Avoid burdening your family with the responsibility of caring for you