Long Term Care

Long-term care is a broad range of needs and includes things like cognitive impairments, chronic conditions, and assistance with activities of daily living. While there are many different levels of long-term care needs—some more severe than others—any long-term care condition can significantly alter your quality of life and drain financial resources. This is especially true if you are retired and living on retirement income.

Generally, there are six Activities of Daily Living that factor into long-term care coverage.

  • Bathing
  • Dressing
  • Using the Toilet
  • Transferring (to or from a bed or chair)
  • Incontinence
  • Eating

Those who need assistance with these ADLs may require home health, assisted living, or nursing care.

Who Does Long-Term Care Affect?

According to Longtermcare.gov, “recent research suggests that most Americans turning age 65 will need long-term care services at some point in their lives.” This can be tied to a rapidly growing senior population and longer life expectancies. But, as with disability, long-term care needs can affect individuals of all ages.

Being prepared for a long-term care need is crucial to protecting both your physical and financial health. Long-term care, even for short periods, can result in high medical expenses, which can reduce retirement savings and other assets.

Genworth’s 2017 LTC survey found that in the Jacksonville, FL area, the monthly median for care in an assisted living facility is $3,625, for a home health aide, $4,195, and for nursing home care in a semi-private room, $8,638.

Based on these numbers, a year’s worth of semi-private nursing home care could be $103,660.

These numbers are only estimated to rise, with Genworth estimating that in 2027 the monthly national median for nursing home care in a semi-private room is expected to increase to $11,609—or $139,310 per year.

How Can You Prepare For Long-Term Care Needs?

You can prepare for the physical and financial costs of a long-term care situation by purchasing a long-term care (LTC) insurance policy. As with any type of insurance, coverage will vary, but most LTC policies generally help cover:

  • Costs of assisted living communities
  • Home health care and visiting nurses
  • Help with daily living activities
  • Nursing home care

Like with disability and critical illness insurance, long-term care policies are available as a standalone policy but are now more common as a rider or additional feature on a life insurance product.

When is the best time to anticipate your long-term care needs? Now.