December 22, 2020

What is long term care insurance? (video)

The growing cost of aging can take a toll on your finances. Here’s how long-term care insurance can help you cover those expenses and give you the care you need as you age. 

It's easy to take our ability to perform day-to-day activities for granted. However, this can change – especially as we age. That’s why it’s so important to consider your future healthcare needs as you build your retirement plan.  As you age, whether you’re living in your home or a care facility, costs can add up. That’s where long-term care insurance can help.

What is long-term care insurance?

Long-term care insurance provides a comprehensive income-style benefit when you become dependent. This helps protect you and your family financially.

Long-term care insurance can help cover the cost of care services in any environment, including:

  • a personal residence – like your own home, 
  • a retirement home, or
  • a long-term care facility.

It can help cover the cost of care if you’re unable to care for yourself because of declining cognitive or physical abilities.

It can also help pay for assistance to manage your daily activities, for things like bathing and dressing. Or, if your cognitive condition has worsened and you need constant supervision to protect your health and safety.

How does long-term care insurance work?

Generally speaking, there are two options for long-term care insurance:

  1. Plans can be set up to reimburse specific expenses, such as homemaking or private nursing services.
  2. Or, your plan can be set to provide an income-style benefit. This means you'd get money on a regular basis and use it any way you choose.

How can long-term care insurance help you and your family?

Staying in a long-term care facility can cost thousands of dollars a month. And, government health care programs may not cover all of the support services you need.

Long-term care insurance can help pay for stays in nursing homes and chronic care facilities. It can also pay for rehabilitation and therapy programs.

Caring for loved ones at home can be a strain emotionally, physically, and financially. In some cases, it may mean taking time off work or leaving full-time employment to provide that care. Long-term care insurance can help relieve some of that stress. You can even use it to compensate family caregivers for the help they provide.

Some plans offer unique features, like:

  • the option to protect your benefits against inflation, and
  • the option to return premiums to your estate if you die before receiving any benefits.

With long-term care insurance, you and your family can focus on finding the best care for your needs, rather than worrying about how you’ll pay for it.

Talk to an advisor for help

Need more information or help getting started? An advisor can provide more information to help you decide if long-term care insurance is right for you. 

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