You’re planning to live a long time, and the longer you live, the more likely you are to require some kind of long-term care. It’s important to understand the long term care is not medical care, it’s almost always “custodial care.” This includes help with your activities of daily living (ADLs), including bathing, dressing, feeding, toileting, transferring & continence, or it may be supervision needed because of a cognitive impairment. While most long term care is received at home, it can also be in adult day care, assisted living, hospice or a nursing home.
The question many people may ask is not, do I need long-term care, but rather, how will I pay for long-term care when it is needed? Medicare does not pay for long term care, and Medicaid will only help with long term care expenses after you’ve spent down your own assets. That means that individuals requiring long-term care must rely on savings, family, or both to provide care into the later years. The cost of that care is not inexpensive. The average monthly cost for assisted living in Maine is $5,700 per month or nearly $70,000 per year. If you require nursing home care, the cost rises to nearly $100,000 per year on average. Paying these out-of-pocket costs quickly eats into long-term savings and places a great deal of financial strain on families shouldering the burden of care. That’s where long-term care insurance comes into play.
In exchange for a premium, long-term care insurance policies pay a daily or monthly amount to cover the costs of home health, assisted living, or nursing home care. The younger and healthier you are when you put your long term care insurance in place, the less it’s going to cost, and the more options you’ll have. So, the best time to purchase a long-term care policy is often when you are 50-65 years old.
What’s your plan for long term care? Many people are turning to affordable, effective insurance options to protect themselves against a long term care expense. A well-designed long term care plan can help ensure you get the care that you deserve. Check out our guide to determine the best long term care policy for your specific needs.
Meet Kerry Peabody, a long term care insurance specialist at Clark Insurance. Kerry will be happy to answer your questions and guide you through the process of determining the appropriate amount of insurance, the policy duration, and life-time maximums.
Kerry answers some common questions about long-term care insurance in these short videos:
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Ever wondered what really influences the cost of a long-term care insurance plan? Don’t miss this opportunity to learn from a specialist.
Are you in retirement planning mode? Did you know that long-term care plans can be purchased as early as age 18?
There are four key components of a long-term care plan – do you know what they are?
Long-term care insurance can help you stay in your own home longer, and help keep you in control of your care. Policies cover what Medicare and health insurance typically do not. Long-term care is not medical care. Rather, the vast majority of long-term care is what we call custodial care. It includes such care as assistance with tasks like bathing and dressing or supervision due to a cognitive impairment. Long-term care insurance policies typically cover care at home, adult daycare, assisted living, hospice, and nursing home care. This insurance product gives you the option of receiving care in a setting of your choice when you need it.
Long-term care insurance policies pay a daily or monthly benefit to cover the cost of in-home care, adult day care services, hospice care, respite care, assisted living care, memory care, and many skilled care services for qualified policyholders. They can also help pay for things like home modifications, caregiver training – a full range of care-related services. Some policies will even allow you to pay family members and informal caregivers.
The primary benefits of long-term care insurance policies include:
Factors that control the price of long-term care insurance include the age when coverage is purchased, overall health of the policyholder, and plan design. Plan design considerations include the amount of monthly or daily benefit, the duration of the benefit period, and other contract riders. Longer benefit periods and higher daily coverage amounts increase insurance premium costs.
Long-term care insurance policies can be purchased by policyholders from 18 years old to 79 years old. While younger is better, the best time to buy long-term care insurance is typically pre-retirement age, between 55 and 65 years old.
Long-term care insurance policies include:
Have another question about long-term care insurance and how to find the best plan for you? Contact our team to see how we can help!
"Are you fully covered for that?' Was the question the Clark agent asked me right after I had explained a situation that a similar business like ours had gone through and nearly ruined them. Rather than just selling me a policy, which would have been the easy thing to do, he did a full insurance review and determined what was truly right for my business in my industry. The agents at Clark really do what is right not what is easy and that really helped me get the right insurance, peace of mind and understanding I needed as a business owner."
“As a small business owner I so appreciated the service I received from Clark Insurance. They were my agent for over 10 years, and when I sold the business the new owner kept them on and is equally happy. The rates were always competitive, my agent was super-responsive and helpful, and the one time my company filed a claim the process was smooth and easy. I have worked with a lot of insurance agents over the years, and Clark stands out as one of the real gems. If I could leave 6 stars I would!”
“We often rely on Clark Insurance to help us better understand liabilities in contracts, to suggest ways to better allocate those risks, and to help us communicate concerns with client prospects. Those discussions with prospects help foster a better understanding of each party’s needs, and help build long-term relationships based on trust and mutual respect.”
“Clark helps us determine where we’re exposed, what the costs are, what’s possible, what’s not possible – that’s made a big difference. Clark advocates for us with insurers who want to know the types of work we do, how we operate, and the health of our company. In this aspect of the business alone Clark has helped us become a stronger company, more quickly, and more able to compete for more prestigious projects.”
“Clark Insurance is No. 1 in customer service! I call. I can always talk with someone, and I get answers right away. I know they’ve saved us substantially in premiums. They make it easy for us to manage our insurance. Knowledgeable, hardworking, responsive – it’s that simple. It’s basic and I think that’s what people are looking for. For DiMillo’s Restaurant, Clark has been a great choice.”
“Right in the middle of tax season, our offices were flooded by a broken sprinkler on an upper floor. Clark Insurance stuck with us through the entire claim process. They talked with the carrier and made the process go smoothly in getting us back to business. In fact, we asked them to join us in presenting the importance of disaster planning at a New Hampshire Society of Certified Public Accountants meeting!”