Apr 26th, 2018
Recent studies show most Long-Term Care Insurance claims start with care at home. While most people think the insurance only pays for nursing homes, the reality is the opposite. In 2021 over $12.3 Billion in benefits were paid to American families.
As the COVID-19 virus crisis seems to have diminished, it still plays a significant role in our lives, especially for older adults. The impact on those with chronic health problems is still a real concern, and those living in nursing homes should still be concerned.
The good news is most people don't receive long-term health care in a nursing home. Plus, nursing homes and other long-term care facilities have done much better to keep the virus in check and maintain quality care.
While we think about the unfortunate deaths due to COVID-19, the consequences of the virus have added to the number of people who need long-term health care. The importance of those requiring long-term health care services to be at home - or a quality facility - is even more paramount today than ever before.
Those who own an affordable Long-Term Care Insurance policy already know they will have access to their choice of quality care either at home or at a facility of their choice. The guaranteed tax-free benefits offer them peace of mind knowing they will get quality care in their desired setting. Their families will not have to face the burden of being a caregiver.
Long-Term Care Insurance delivers on its promise giving policyholders a choice of quality care in the setting they desire. Home is where most people want to be. Advance planning is the key to enjoying a future successful retirement.
If you discuss long-term care with friends and family, you will not hear the words ''I want to go to a nursing home when I get old.'' It is fair to suggest the clear majority of people would rather stay in their own homes and would want to do anything to keep out of a nursing home if possible.
However, when Long-Term Care Insurance is discussed in articles or at the dinner table, many people think it is nursing home insurance. Nobody wants nursing home insurance. The reality is different than the truth, according to Jesse Slome, the director of the American Association of Long-Term Care Insurance (AALTCI). The AALTCI is a national consumer education and advocacy group.
People mistakenly associate Long-Term Care Insurance exclusively with skilled nursing home care.
The AALTCI releases claimant data every year. Most Long-Term Care Insurance claims begin in the home, according to their claims analysis.
The association says 73% of all new claims in 2021 began in the home setting. This has been very stable for several years as the demand for in-home care remains the overwhelming choice of those who require care.
You buy insurance to protect against real risks and real needs. The risk of needing care in your own home is real.
The NAIC report says that since 1994 over $100 Billion in claims have been paid to American families. The NAIC study also shows those with Long-Term Care Insurance receive more paid care at home than those who don't.
The AALTCI says the major insurance companies in the industry paid over $12.3 Billion in claim benefits in 2021, helping American families address the costs and burdens resulting from extended health care.
Both the dollars paid and the number of individuals receiving benefits continues to grow as more Americans benefit from having this important protection.
Women account for a majority of all Long-Term Care Insurance claims. Slome says planning for long-term care is crucial for women since they are more likely to require care for a more extended period of time.
Long-Term Care Insurance pays benefits in all settings. The study shows that 9% of new claims started in a nursing home, while 73% started in their own home. Assisted Living represented 18%of new claims in a study released in 2021.
Individuals want to remain in their own home when care is needed, and Long-Term Care Insurance enables them to get the care they need in the setting they prefer.
Slome, quoted in McKnight's Long-Term Care News told the website that the first policies only paid for skilled care in a nursing home. He explained the focus of the insurance companies was to pay for nursing homes. This is not the case today.
Most plans today will pay for any level of care at home, adult day care, assisted living, memory care, or nursing home care. This gives the consumer, and their family, a choice of quality care in the setting they desire.
Planning for longevity has become a crucial part of retirement planning. If you are saving money in your retirement accounts (401(k), IRA, SEP, 403(b)), protecting that money from the high costs of long-term health care is prudent.
Many experts say consumers want choice. They want to decide how they will be taken care of and in what setting. They want quality care choices without either draining assets to pay for them or burdening their spouse or adult children. Long-Term Care Insurance can help you make those choices before retirement.
LTC Insurance comes with a variety of options from several top insurance companies. Premiums do vary, but for many are very affordable.
These products are medically underwritten, so be sure to seek the help of a qualified Long-Term Care Insurance specialist's help to get matched with the right insurance company.
Most people obtain their coverage in their 50s. There are tax incentives in some situations, or you could use pre-tax money from a Health Savings Account to get reimbursed.