What is Long Term Care Insurance?
When a person requires someone else to help him with his physical or emotional needs over an extended period of time, this is long-term care. This help may be required for many of the activities or needs that healthy, active people take for granted and may include such things as:
The 6 examples listed above are also referred to as Activities of Daily Living (ADL’s). Without question, other factors could impact your daily life but most will generally fall under one of these 6 categories.
The need for long-term care help might be due to a terminal condition, disability, illness, injury or the infirmity of old age. The need for long-term care may only last for a few weeks or months or it may go on for years. It all depends on the underlying reasons for needing care.
Temporary long term care (need for care for only weeks or months)
Ongoing long term care (need for care for many months or years)
How Much Long Term Care Will I Need?
The duration and level of long-term care will vary from person to person and often change over time. According to LongTermCare.gov here are some statistics (all are “on average”) you should consider:
Custodial Care Versus Skilled Care
CUSTODIAL CARE refers to non-skilled, personal care, such as help with activities of daily living like bathing, dressing, eating, getting in or out of a bed or chair, moving around and using the bathroom. It may also include care that most people can do themselves, like using eye drops.
Medicare doesn’t pay for Custodial Care.
SKILLED NURSING CARE refers to a level of care that includes services that can only be performed safely and correctly by a licensed nurse (either a registered nurse or a licensed practical nurse). Also Occupational and/or Physical Therapists would qualify as skilled care.
Medicare only pays for Skilled Care
Now if we all knew in advance what ailments, accidents, diseases and injuries would befall us later in life and when they would occur, the insurance companies wouldn’t exist as we would only purchase insurance right before the pre-determined event. This logic can also apply to Skilled Care and Custodial Care. An initial Skilled Care event can transition into a Custodial Care situation in a relatively short period of time. And remember, this is not necessarily how it is defined by your doctor but how it is defined by Medicare. Your doctor is your most important ally in these matters and you do have rights where you can appeal and maybe somewhere in the future resolve the issue if you are reclassified and denied. But you need the help now and most Skilled Care/Custodial Care facilities aren’t going to provide care in the hopes that you are on successful on a future Medicare appeal. What will you do if that happens?
Average Cost of Long-Term Care Facilities
According to a recent Genworth Financial study, the average cost in Michigan for a Nursing Home stay is $45,485 per year. That is approximately $3,800 per month. Even an affluent couple would eventually begin to feel the financial pain of $4,000 a month every month being charged and due on receipt. There are ways this cost can be paid:
Contact us to learn more about the right long term care insurance for you.
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Troy, MI 48084
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