Long-Term Care:
Will you need it?
Almost 70% of people turning age 65 will need long-term care services and support at some point in their lives. (Source: LongTermCare.gov, February 2020)
Medicare and most health insurance plans, including Medicare Supplement Insurance (Medigap) policies don't pay for long-term "custodial care." (Source: 2024 Medicare & You, Centers for Medicare & Medicaid Services)
Who will pay for your care when you need help in your later years?
Medicare does not pay for long-term care services, as explained by the Social Security Administration:
“About Social Security and Medicare...Social Security pays retirement, disability, family and survivors benefits. Medicare, a separate program run by the Centers for Medicare & Medicaid Services, helps pay for inpatient hospital care, nursing care, doctors’ fees, drugs, and other medical services and supplies to people age 65 and older, as well as to people who have been receiving Social Security disability benefits for two years or more. Medicare does not pay for long-term care, so you may want to consider options for private insurance (emphasis added).”
How much will it cost?
The average length of a nursing home stay is 835 days…more than two years. (Source: Centers for Disease Control and Prevention, Nursing Home Care FastStats, last reviewed March 2021).
At a median daily rate of $297, an average nursing home stay of 835 days currently costs almost $248,000, making it virtually unaffordable for many Americans.
Get in touch with us todayMutual of Omaha - Long-term care brochure
National Association of Insurance Commissioners Long-term Care Guide
Long Term Care Insurance
Long-Term Care includes a wide range of medical and support services for people with a degenerative condition (say Parkinson's; or those that occur after a stroke), a prolonged illness (cancer) or a cognitive disorder (Alzheimer's).
If these make you think of conditions that affect older individuals, you are right. Most people need long-term care in their later years (typically their 80s).
But, younger people need long-term care as a result of accidents (falling off roofs and motorcycle accidents especially for men) or illnesses that tend to inflict younger people like Multiple Sclerosis.
Long-Term Care is not necessarily medical care but rather "custodial care." Custodial care involves providing individual assistance with activities of daily living or the supervision of someone who is cognitively impaired.
To better understand Long-Term Care, think of the activities that you performed when you woke up this morning. You probably stepped out of your bed … walked to the bathroom … used the toilet … took a shower … got dressed … ate breakfast.
When you are healthy it is easy to take for granted these Activities of Daily Living (ADLs). However, when you or a loved one is stricken with a degenerative condition such as a stroke or Alzheimer's, performing these ADLs becomes impossible without the assistance of another person. As we age, performing these simple functions becomes difficult; often impossible.
This type of care is what Long-Term Care means. It is the same type of care that a parent must provide for their new baby. This type of care is chronic (full-time) and thus becomes very expensive. Long-Term Care can be provided in many settings including nursing homes, your own home, assisted living facilities and adult day care.
New long-term care options include - Life coverage with built in long term care rider. By combining life insurance with long term care you have purchased protection for long term care needs and if you do not need long-term care you will receive the benefit of your payments back in the form of death benefit. Many of these Life/LTC policies also include a return of premium benefit.
For information on using long term care to protect your assets visit the Texas Long-Term Care partnership at https://www.ownyourfuturetexas.org/
Call Angela at 713-498-6800 for more information.