What is it ?

 

As  simple as the title suggests, it is an insurance policy that covers the cost of proving the care (up to a predetermined amount) if and when a person needed care on a long term basis

 

Who needs Long Term Care?​

 

When a person has a cognitive impairment and or physically he/she is unable to do some basic function of life. The person is in need of long term care. Basic functions of life are called ADLS - Activities of Daily Living.

They are mainly six function that we do on a daily basis:​

1. Eating

2. Bathing

3. Dressing

4. Toileting

5. Continence

6. Transferring

 

When a person needs help with any of the two or more activities he/she qualifies for long term care.

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There are some basic myths about Long Term Care. “My health insurance will pay “-“ my family will take care.” While the first two are not true, the last one is totally unpredictable. Medicaid will pay. True, they do if you are poor + broke health insurance does not pay.

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Assistance with ADLS can be provided at nursing home, or at an assisted living facility or at home depending on the severity of the care. A policy that cover these expenses would be called a long-term care insurance policy.

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The statistics show one in three after the age of 65 will need some kind of long term care the care could cost somewhere between 75k to 100k+ annually depending on where you live in the US.

Finally the question is: Should I buy this kind of policy - Long Term Care easy way - “Not a recommendation”- is to look at these factors:

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1. I am rich and I can afford to pay for those expenses if it happens

2. I am poor and broke and Medicaid will pay for it

 

In both cases probably there is no need.

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Now the last case that most of us fall in – I am not very rich or very poor and I cannot afford the expenses (if it happens you may need & consider buying such a policy).