Planning Ahead With Long-term Care Insurance

Planning Ahead With Long-term Care Insurance

Did you know you can plan for your future with long-term care insurance? When it comes to health, unfortunately, we don’t have a crystal ball to look into the future. Even so, statistics show that Americans are living longer and healthier lives! While this is welcome news, it also means there is an increased risk of living with a chronic condition or requiring help from others.

As you plan for the future, you should take every care and precaution to ensure your future. Long-term care includes various forms of assistance, such as help performing daily activities, household maintenance, yard work, meal preparation, bathing or dressing, and even managing your finances. In some cases, the best options for your long-term care include an assisted living facility or nursing home. With the average private-pay nursing home stay costing more than $80,000, a long-term insurance policy allows you to offset the high cost of extended care due to advanced age, accidents, or illnesses while protecting your personal assets.

So, what is long-term care and long-term care insurance?

Long-term care (LTC) refers to a wide array of medical care, personal assistance and social support services for people who are physically or mentally unable to independently care for themselves for an extended period of time. Whether you need LTC insurance depends on your age, health status, overall retirement goals, income and assets.

Long-term care insurance protects individuals against incurring large out-of-pocket expenses should they need help to perform the activities of daily living due to advanced age, an accident, illness, or injury.

A long-term care insurance policy covers some or all of the following types of services:

  • Nursing home coverage
  • Assisted living facility coverage
  • Adult daycare center coverage
  • Home health care coverage
  • Personal care coverage

Most policies pay a daily maximum benefit and a lifetime maximum benefit. Actual benefits are chosen at the time the policy is purchased. The daily maximum benefit for most long-term care insurance policies is usually less than the cost of one average day of long-term care service.

How Does LTC Insurance Differ From Disability Insurance?

Unlike a medical policy that will cover a limited number of days of recuperative time, a long-term policy will cover two years or more. Beyond that, disability insurance replaces only salary at the time of the injury and does not cover care. The policyholder will then have to pay out-of-pocket for any ongoing long-term care due to his or her accident or injury.

In addition, Medicare should not be considered a resource for handling any substantial long-term care expenses. This program reimburses the insured for a maximum of 100 days, with the average repayment of expenses being a mere 28 days.

When and How should I get LTC?

Short answer: the earlier the better and just contact Byars|Wright for your options!

If you’re considering long-term care insurance, know that its cost increases with age. There are often waiting periods before payment for care can be reimbursed. According to the Health Insurance Association of America, the average age at which people purchase long-term care insurance is 62. However, purchasing a policy at a younger age will definitely benefit you! Premiums are typically more affordable if purchased at a younger age.

Instead of relying on family or savings to pay for the expensive care you may need in the future, long-term care insurance is a viable alternative! It allows YOU to choose your independence and comfort in the future. If you’re interested in this, contact our LTC specialist, CJ Jordan. We can help you determine your options for your best future.

Not completely convinced? Watch this quick video to hear about a client whose mother’s LTC costs are reaching one million dollars! They’ve decided that now is the time to purchase their own LTC insurance.

Byars|Wright, Inc. is a locally owned independent insurance agency with five offices across Alabama, The agency has developed into a major provider of commercial and personal insurance and serves customers across the Southeast. Since 1946, the agency has expanded its scope of business and delivers a wide range of insurance products with quality coverage at competitive prices. Byars|Wright is designated a Best Practices Agency by the Independent Insurance Agents and Brokers of America and was also named “Best Companies to Work For in Alabama” by Business Alabama in 2016, 2017, 2018, 2019 and 2020. In 2020, Byars|Wright won their category as the number one Best Company To Work For. Byars|Wright is Where Relationships Matter.

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