| Types of Long-Term
Care The types of care range from help with everyday activities, for example, bathing, to continuous care by skilled medical personnel in a nursing home. The following is a list of what services are considered under long-term care: Who is a candidate for long-term care insurance? Not everyone is a candidate for LTC insurance, and each individual situation is unique. According to the Health Insurance Association of America and their study, "Who Buys Long-Term Care Insurance in 2000" (source: Health Insurance Association of America), the following are characteristics of the average long term care policy owner in 2000: To help determine the most appropriate candidate for long-term care insurance, the United Seniors Health Council established the following guidelines: Determining which individuals are candidates for long-term care insurance relies on a comprehensive financial review, but this criteria can help you begin the process. Average Daily Costs of Long-Term Care The average cost of a nursing home stay is $153/day for a private room, which is nearly $56,000/year. According to experts, this number is expected to rise to an astounding $190,000 by the year 2030 (source: The National Council on the Aging (NCOA) www.ncoa.org)¹. Most families are not prepared to handle this financial burden and it can cause major disruptions in a family’s financial plan and security.  What are the benefits of long-term care insurance? Securing long-term care insurance benefits the individual and their families in many ways. The reality is one in four people who live to age 65 will spend one year or more in a nursing home and one in three will spend three months or more in nursing care or assisted living situations (source: United Seniors Health Council (USHC) www.unitedseniorshealth.org)¹. It is extremely important that families understand that Medicare and Medicaid are government-funded programs for specific individuals or low-income families and there are strict eligibility requirements to qualify for coverage. Currently, Medicare pays about 11.4% of the national long-term care expenses, while Medicaid funds approximately 47.8%. Only 5.2% is currently funded by insurance companies, leaving 35.6% to be funded by other alternatives, including personal or family finances (source: A Shopper’s Guide to Long-Term Care Insurance, 1999, NAIC). Why should business owners offer long-term care insurance? Through long-term care insurance, businesses can help their key employees protect their retirement nest-egg, recognize top performers/key employees, and enjoy the tax incentives of providing LTC coverage. Businesses are allowed to offer a class of key employees and/or executives a corporate-paid benefit (found under Section 105/106 Medical Reimbursement Plan), by sponsoring a Key Employee Long-Term Care Plan. The business can pay for the policies as an added reward and fully deduct the premiums as a business expense. Advantages of Key Employee Long-Term Care Plans The cost of long-term care can take a toll on individuals and their families, not only financially, but emotionally as well. Even though some are prepared for retirement, the cost of nursing care and assisted living can quickly deplete any assets. Educate your customers on the risks and consequences of needing a form of long-term care and not having insurance. Having a long-term care insurance plan can provide security, peace of mind, and protection. People are living longer than ever before, increasing the need for long-term care (LTC) insurance. Two out of every five Americans will need nursing home care at some point in their lives (source: AHCA American Health Care Association). LTC insurance is designed to cover the costs associated with nursing care and home health care services. Most importantly, long-term care provides security and reassurance for individuals and their families should the need for long-term care arise. |