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Long-Term Care Insurance: FAQ
Click on the questions below to learn more about UNFCU Long Term Care. If you still have questions, please contact a UNFCU Insurance Advisor for further assistance
What is Long Term Care?
Who Needs Long Term Care?
How much do Long Term Care services cost?
What about the costs of Long Term Care in the future?
Why should I purchase Long Term Care now?
Who pays for LTC Service?
What would a LTC insurance policy cover?
Where can I receive care?
Are LTC Policies Expensive?
What is Long-Term Care (LTC)?
Long-Term Care (LTC) is the assistance that is provided to people who are unable to perform the Activities of Daily Living (ADLs) that healthy, fully functional people do independently and on a daily basis. The need for LTC services arises from chronic health conditions and/or physical disabilities, such as a stroke, Multiple Sclerosis, Parkinson’s or Alzheimer’s disease. The services are provided over a long period of time. Some people mistakenly assume that most people receive LTC in nursing homes. In actuality, a significant number of individuals receive LTC at an assisted living facility or in their own home.
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Who needs LTC?
More than half of individuals 85 years and older are in need of some form of nursing home or at-home care. However, contrary to popular belief, the need for LTC is not reserved exclusively for the elderly. 40% of those who are receiving LTC are pre-retirement age adults from age 18 to 64. Their situations are caused by accidents, brain injuries or tumors, mental conditions, multiple sclerosis, or even the early onset of Alzheimer's or Parkinson's disease. Whatever your age group, it is important to consider LTC.
Meet with a UNFCU Insurance Advisor today to determine if LTC coverage is right for you.
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How much do LTC services cost?
According to "MetLife Market Survey on Nursing Home and Home Care Costs 2002," the national average cost for nursing home care is US $51,195 per year (for a semi-private room). Care in your own home is US $23,400 per year (for a Home Health Aide). The average nursing home stay is 2.6 years, resulting in a total cost of US $114,660.
- Expenses vary based on where you live and the type of the facility you choose. In some cities, current annual nursing home costs range from US $60,000 – US $80,000 per year.
- At US $90 per visit for a Home Health Aide, 5 visits per week cost an average of $23,400 per year.
Those costs can quickly add up. For instance, with the average stay at 2.6 years, the average cost of nursing home care is now US $135,707 per person or US $271,414 for a married couple.
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What about the cost of LTC services in the future?
The cost of all LTC services are expected to increase steadily.
- According to a study done by The American Council of Life Insurers, "Can Aging Baby Boomers Avoid the Nursing Home?”, nursing home care alone is expected to cost US $190,600 per year by 2030.
- Assuming a stay of 2.6 years, the average nursing home bill in 2030 will be US $495,560.
Top Why should I purchase LTC now?
When you purchase coverage at a younger age:
- You pay a lower premium
- You will most likely pay less in total premium outlay
- You avoid the risk of not qualifying later for health reasons
It is recommended that you apply when you are younger and in better health.
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Who pays for LTC Service?
LTC insurance is the only insurance designed to help cover the cost of LTC services. Without it, you will most likely be responsible for paying most, if not all, of the expenses.
LTC services are not fully covered by any other type of insurance.
- Even the best medical, HMO or PPO plan will not adequately cover your LTC needs, because their focus is "acute" health care (care for medical conditions such as cancer, broken bones, or influenza).
- Disability income insurance generally replaces lost income, and provides no LTC insurance benefits.
- Medicare covers nursing home and at-home care only for a limited time, and is subject to restrictions. What Medicare does not cover, your Medicare Supplement will not cover either.
TopWhat would a LTC insurance policy cover? The best policy should provide you with comprehensive benefits, covering all types of care: at-home care, adult day care centre, assisted living facility, or nursing home care. Benefits should be available for the care that is most appropriate for your needs. Your policy should also be adequate to cover unforeseen needs, such as injuries or disabilities.
Meet with a UNFCU Insurance Advisor today to determine if LTC coverage is right for you.
It is recommended that you consider the inflation rate when purchasing your policy. What benefits do you want to be available to you in 10, 20, or 30 years? What do you expect the cost will be at that time compared to the cost today? Accounting for inflation will ensure that your policy can cover all of your needs.
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Where can I receive care?
LTC insurance offers a wide range of benefits, ensuring that you will be able to get the type of care you need, at the location you desire. Depending on your coverage, your options may include:
- Home Care — most people prefer receiving care in the comfort of their own home. UNFCU makes available LTC insurance for care provided by a licensed nurse or a licensed therapist in your home. You can also receive care or services from a certified private aide, home health aide, homemaker, or from a care advisor from a care management organization.
- Adult Day Care Centre — offers care, health support and rehabilitative services for adults during the day.
- Assisted Living Facility — for many, these licensed (where required) facilities, provide a great way to receive skilled nursing or custodial care in an environment that helps maintains independence and an active lifestyle.
- Nursing Home – your LTC insurance policy will provide coverage for all levels of nursing home care.
- Informal Care – you may prefer to have a friend or loved one care for you in your own home. Some programmes provide some compensation for care you receive at home from friends, neighbors, or relatives who are not health-care professionals.
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Are LTC Policies Expensive?
Considering the protection and security they provide, LTC policies are not expensive at all.
Meet with a UNFCU Insurance Advisor today to determine if LTC coverage is right for you.
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