Long-Term Care Insurance

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Long-term care is something that nearly 50% of us will need once we are over 65 years of age. That’s a much higher percentage that would go “on benefit” than most any other insurance policy (except maybe dental insurance…see that tab for more information). With so many who will use the coverage that IS a factor that drives up premiums.

1 year

Around 50% of those that do use the benefits of their long-term care plans use those benefits for a year or less.

2 years

of the other 50% who use their benefits for more than one year, 70% of them are on benefit for more than 24 months.

Family History

Taking all those statistics into account unless your family history shows a reason why a 1 to 3-year policy should be a good value for most people…and should be affordable. Where it gets expensive is when agents want to sell you a 10 or 15-year benefit. Is that expensive? Sure. Do you need it? Unless your family history says, “yes” then I say, “no.”

Long Term Care and Activities of Daily Living

Long Term Care policies do not cover doctor bills. They cover bills related to activities of daily living. What is an “activity of daily living.” Those are normal daily things that most of us take for granted. The problem is that many people find their health compromised to the point they cannot do them. So they need help. It’s nothing to be embarrassed about it is just part of life for a lot of us. A. Lot. Of. Us.

Bathing, Dressing, Eating, Incontinence Issues, and what is called Transferring. Transferring is getting in and out of bed, a chair, the toilet…stuff like that. Finally, the last “issue” related to Long Term Care is cognitive impairment. Everybody thinks about Alzheimer’s Disease, but there can be numerous things that cause cognitive impairment.

You become eligible for benefits on your long-term care policy when you need help with at least two of the activities of daily living OR have cognitive impairment. With cognitive impairment, you don’t have to have problems with other ADL’s as well.