Learn About LTC
Without the Confusing Small Print.
According to the Department of Health and Human Services, “Long Term Care involves a variety of services designed to meet a person’s health or personal care needs during a short or long period of time. These services help people live as independently and safely as possible when they can no longer perform everyday activities on their own.”
The definition in itself is a mouthful, but at Claren we believe in removing the fancy words and confusing small print that so often accompany traditional insurance practices. We believe that big decisions should be made when you’re armed with all the information you need to make the best possible decision for you, your family and your business.
Understanding Long Term Care and securing proper Long Term Care coverage can often be a long, complicated and daunting process, but we make it easy, fast and simple. That starts with breaking down and answering the five most frequently asked questions we get,
What is Long Term Care Insurance?
Unlike traditional health insurance, long-term care insurance is designed to cover long-term services and support, including personal and custodial care in a variety of settings such as your home, a community organization, or other facility.
Long Term Care refers to a variety of medical treatments or social services that are designed to support someone that may be suffering from short or long term health issues or disabilities, whether it is as a result of gradual progression or because of more sudden health issues such as injury, a heart attack or stroke. These treatments or services assist the individual so they are better able to perform basic daily functions.
It’s also important to know that Long Term Care can become a heavy financial burden and it provides great peace of mind to know that you have plans in place before something happens.
Do I Need It?
According to the U.S. Department of Health and Human Services over 68% of people over the age of 65 will need some type of long-term care during their lifetime – and that percentage goes up the older they get.
Contrary to what most of us associate with elder care, most Long Term Care does not happen in a special care facility, but instead it takes place in the home by family members or friends, and the majority of care provided is centered around day-to-day assistance rather than actual medical care.
The cost of care can be extensive, both emotionally and financially, with the national average annual cost of care currently at $88,920.
For many of our clients, the primary reason for securing proper Long Term Care coverage is to ensure that a surviving spouse or child(dren) are not left in financial difficulty. If you’ve built a solid nest egg, this is a good way to protect it.
When Do I Need It?
One thing is certain – you can expect to pay more for Long Term Care coverage the older you are when you buy it, so don’t wait until it’s no longer affordable.
Individuals who delay the decision to secure proper Long Term Care coverage also run the risk of not qualifying, due to a number of causing factors. Care can be a heavy financial burden and we highly recommend having an honest discussion with our professionals about your financial situation and what to expect from Long Term Care coverage.
How Much Does It Cost?
There are four factors that have the largest impact on the cost of a long-term care policy.
While these four areas have the greatest impact on the cost of a policy, they are not the only factors. It’s also important to consider the cost associated with NOT having the proper coverage. Check out this post on The True Cost of LTC
Contact one of your Claren representatives today and we will review your current situation and work with you to find the most financially beneficial coverage for you. This includes reviewing your current retirement assets, as there are several ways that qualified funds can be used to invest in Long Term Care coverage.
What Does It Cover?
A Long Term Care insurance policy helps cover the costs of that care when you have a chronic medical condition, a disability or a disorder such as Alzheimer’s disease. Most policies will reimburse you for care given in a variety of places, such as:
Normally, insurance is triggered when the insured is not able to perform at least two functions of normal daily living. These functions include, but are not limited to, the functions outlined in the infographic above.
NOTE: One of the most common misconceptions is that insurance coverage means “use it or lose it,” but that is not the case with products that include a death benefit. Read more about that on the Our Products page.
Do I Qualify?
There are a number of factors that are taken into consideration to determine your coverage eligibility, including age, health conditions and various personal behaviors. You can always feel good knowing that our client care team will work diligently to identify a solution that works for you. If neither of our featured products are a fit, we can offer a variety of alternative products that include annuities and other Life-related products that carry long term care riders.
Business Owner?
Contact us today to discuss favorable coverage options for you and your employees.