October is Long-Term Care Planning Month

Whitener Capital Management |

What is Long-Term Care Insurance?

Long-Term Care (LTC) insurance policies are designed to cover the cost of services that go along side daily living activities such as bathing, dressing, and eating, over a prolonged period of time. This level of care often comes with the effects of aging, chronic illness, or disability. LTC services may be provided in your home, an assisted living facility, or in a nursing home. 

What is the difference between Long-Term Care and Short-Term Care? 

Both Long-Term Care and Short-Term Care policies aid coverage for the cost of care in the event you are unable to preform certain daily activities. However, there are key differences between the two:

  • Length of Coverage: LTC typically provides coverage for a longer period of time, such as five years, ten years, or even lifetime coverage. Short-Term Care provides aid for a shorter period of time, typically less than a year. 
  • Benefits: LTC covers cost of care in a number of different environments including nursing homes and assisted living facilities. Short-Term Care insurance typically only covers care within an assisted living facility or nursing home. 
  • Cost: LTC is typically more expensive than short-term care. 

Should I have both LTC and Short-Term Care Insurance?

Considering both LTC and Short-Term Care policy coverage could be wise for some as they cater to two different scenarios. Short-term care can be beneficial in cases such as the aftermath of surgery or recovery from illness, while LTC is beneficial when faced with chronic illness. 

At what age should I purchase LTC?

Technically, it's never too early or late to purchase LTC. Typically, the best age to purchase LTC is in your mid-50s to mid-60s - that's when you are most likely to qualify for a reasonable rate.

Why is LTC important?

According to a recent survey study, the national median cost of a private room in a nursing home facility is about $109,800 per year, while home health care services averages around $61,250 per year. 

Protects your savings: gives you and your loved one's peace of mind and ensures you have options for care when needed.

If you have any questions regarding Long-term or Short-term care policies and deciding which policy is best for you, please give us a call.