LONG-TERM CARE

WHAT YOU SHOULD KNOW!

You’re Never Too Young to Cover Your Assets!

What is long-term care?

• The kind of care needed when a person is no longer able to manage simple tasks like dressing, bathing and walking without assistance.

• Experts estimate that at least 60% of all individuals will need extended help in one or more of the areas above during their lifetime.

• Over 40% of persons turning 65 will need long-term care sometime in their lives. The average stay in a nursing home facility is 2 ½ years.

• A nursing home facility could cost over $100,000 per year.

 What can long-term care insurance do?

Protect your family from the catastrophic costs of long-term care. Help you remain in control of your assets. Maintain your own independence and not burden a spouse or children.

Aren’t long-term care services covered by Medicare or other health insurance?

Medicare does NOT pay for most long-term care services. Medicare does not even pay for custodial care when that is the only kind of care needed. Even skilled nursing facility care is covered by Medicare only on a very limited basis.

Who should purchase long-term care insurance and why?

Persons 40-60 years of age as they plan for retirement should consider long-term care insurance while premiums are affordable.  Long-term care insurance or LTC is an essential tool to protect assets in later years, to maintain dignity and independence, and not rely on Medicaid with limited options and coverage.  Long-term care insurance is for people who are:

• middle age and older
• generally healthy
• married with a total income of at least $40K and assets, not including the home, valued at $140,000 or more.
• single with a total income of at least $30K and assets, not including the home, of at least $60,000.

What options should you look for in a basic policy?

Nursing Home Care:  These facilities provide care to people who can not be cared for at home or in the community.  Nursing homes provide a wide range of personal care and health services.  The cost can vary depending on where you live and what type of care you need.

• Home Health Care:  To receive help with personal activities (i.e. help with the laundry, bathing, dressing, cooking, and cleaning) at home from family members, friends, or neighbors.

• Elimination Period: The elimination or waiting period is the number of days you must receive long-term care services before benefits will be paid under the policy. One hundred days is the standard out-of-pocket expenses before LTC insurance kicks in. Shorter periods increase the cost of coverage.

• Compounded Inflation Protection:  In an indemnity policy, the inflation protection benefit increases the daily benefit amount over time to help keep pace with inflation and increased expenses. Without this protection, the charges you pay above the daily benefit amount are likely to increase considerably over time.

What is the average annual cost of a long-term care policy?

Age 40 - $3,100 - $3,500 Age 50 - $3,700 - $3,900 Age 60 - $5,200 - $5,900 Paid monthly, quarterly or annually These are estimated ranges based on $250 per day coverage for 1825 days, with a 30-day elimination period compounding at 5

Who offers long-term care insurance?
How do I choose?

A list of insurance companies and independent counselors is available from the New York State Partnership for Long-Term Care to assist you in selecting a plan that's right for you.

Additional Resources:

Westchester County Department of

Senior Programs & Services

(914) 813-6400

Monday through Friday 8:30 a.m. – 4:30 p.m.

New York State Insurance Department

http://www.ins.state.ny.us/

1-800-342-3736

Monday through Friday 9 a.m. – 5 p.m.

New York State Partnership for Long-Term Care Hotline
 www.nyspltc.org

1-888-697-7582

(Sources: New York State Insurance Department, New York State Partnership for Long-Term Care Program, US Centers for Medicare/Medicaid Services)