What is Long Term Care Insurance?

November 21, 2018 / Blog / ilcorp

Ever heard of LTC insurance, or LTCI? These acronyms stand for long term care insurance, which was created to help cover costs associated with health services you might need as you get older. It’s different from traditional health insurance, though, because it can help cover the cost of services like in-home healthcare, assisted living, and more.

Long term care insurance is common. According to the U.S. Department of Health and Human Services, 70 percent of people over age 65 will need some type of insurance to cover their future long term care. People are living much longer lives than in the past, and the need for some type of care as we age is growing.

Understanding Long Term Care Insurance

People are often confused when it comes to choosing any kind of insurance plan. It’s important to understand long term care insurance as you get older and approach retirement age, or if you’re already there. We’ll do our best to explain it.

What does long term care insurance cover?

Long term care insurance covers any type of long-term care. Medicare, on the other hand, pays for the short-term care such as skilled nursing care after you have been hospitalized for at least three days. But when you reach the 21st day of care, Medicare stops paying and long term care insurance kicks in. Of course this varies depending on which type of coverage you’ve chosen. In addition, long term care insurance often covers:

  • Adult day services
  • Assisted living
  • In-home healthcare
  • Memory care and support
  • Respite care
  • Skilled nursing care and rehabilitation
  • How much does long term care insurance cost?

    Again, this depends on which type of plan you select. Cost depends on a few factors, including the insurance company you choose, the amount of coverage you select (the more coverage, the higher the premium), and your current age and health status. The older and less healthy you are, the more you can expect to pay for your LTCI plan.

    Do you need long term care insurance?

    Each person is different and has unique health needs. Some have a plethora of chronic conditions and to prepare for the future, may wish to purchase long term care insurance now for peace of mind. But others may feel they don’t need to purchase long term care insurance. It can be pricey, so it’s up to you to decide if it’s worth the investment. Balance the pros and cons, compare quotes, and talk to your loved ones about the future and where you see your health needs going.

    Immanuel Lutheran Communities offers a variety of health services when and where our residents need them, including assisted living, skilled nursing, rehabilitation, and memory care. No matter where you are in life, we’ll be here with professionalism and kindness when you need us. Learn more about the senior living lifestyle at Immanuel Lutheran Communities today.

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