Long-term care insurance pays for a wide range of services and procedures that typically aren’t covered by Healthcare or Medicare.
Click here to Compare Long-Term Care Costs Across the United States
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Types of Long-Term Care
Skilled
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Intermediate Care
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Custodial Care
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If you have a serious illness or injury that you can recover from, you will probably receive skilled care from nurses or professional therapists. Skilled care is provided daily, usually ordered by a physician, and involves a treatment plan. In short, skilled care helps get you better.
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This type of care is similar to skilled care, but not provided on a daily basis. For instance, if you injured your leg and need to visit a physical therapist five times a week to help you heal, that would be considered intermediate care.
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Includes assistance with daily activities like bathing, eating, dressing, toileting (getting on and off the toilet and other tasks associated with personal hygiene), continence and transferring (getting in and out of bed and chairs).
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Types of Long-Term Care Policies
Traditional Policies
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Combination or Hybrid policies
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Traditional, stand-alone, comprehensive coverage represent the bulk of policies sold and are the most common policies offered. Premiums are paid on a continual basis for the life of the insured as long as the policy remains in force. If unused, no premiums are returned.
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Gaining in popularity, the most common Combination or Hybrid policies are combination life and long term care insurance. Premiums are generally paid on a one-time basis or over a set period of two to ten years. If unused, premiums are returned in the form of a tax-free life insurance benefit
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The example below uses $100,000 as a lump sum. Other amounts are available and can be made in 10 annual payments
Protect dignity and grace
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When most people think of long-term care, they think of nursing homes. But that's simply not true. If you can no longer care for yourself for an extended period of time, you’ll need long-term care services. There's a 70 percent chance that will happen to you. But did you know a suitable policy could be funded without impacting your household budget? It's about finding the solution that works for you.
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Financial and emotional impact
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With increased life expectancies, the probability of needing assisted care services is higher than ever before – and so is the cost. A private room in a nursing home today runs about $85,000 per year and is even higher in many metro areas. Without proper planning, the impact on a family can be even greater. Consider these potential solutions:
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Rely on the government
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While it may seem like there are many programs available, Medicare only covers skilled care after hospitalization and Medicaid requires impoverishment.
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Rely on family members
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Will your spouse be physically able to assist you with daily living activities, such as moving from bed to chair, bathing and dressing? Are your children able to take time off to provide the daily support you may need? There may be a large negative impact of this strategy – both emotionally and financially.
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Create a strategy
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With proper planning, you can take control of your future. It's not one-size-fits-all ... there are numerous solutions that can work. It's important to evaluate your choices and find the option that works for you.
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