Receiving Care for the Long-Term

While it may not be the first thing you think of in your younger years, long-term care can be a very valuable insurance policy for you down the road.

Long-term care coverage is the help an individual needs over an extended period of time in order to manage rather than cure a chronic condition. Those conditions can include things like recovering from an accident or surgery, a stroke, arthritis, dementia and more. The necessary care could re required for periods of weeks, months or years.

Just where the long-term care is administered can vary, including such places as in your residence, adult day care, a skilled nursing facility, or in a residential care or assisted living facility.

Daily Living Activities and LTC

Assistance for individuals can include some of the normal daily living activities such as dressing, bathing, toileting or relocating from your bed to a chair.

In most cases, a medical pro will decide if an individual is not able to perform daily living activities and needs assistance, which can be temporary or permanent.

Doctors, health and insurance companies and government agencies typically look at six standard physical Activities of Daily Living (ADLs) to determine an individual's condition. They are: Bathing, Continence, Dressing, Eating, Toileting and Transferring.

Sometimes long-term care goes by the reference of "custodial care' or "personal care' and family members are the frequent providers. Personal care aides are hired as caregivers through home care agencies or by word-of-mouth referrals.

Long-term care is generally not covered through health insurance policies, Medicare, HMO plans or Medicare Supplement Insurance. If these policies cover nursing home care or home care at all, it is only for a short-term or limited basis.

As many people know, purchasing long-term care insurance can be a very difficult decision to make for individuals over the age of 50.

Prior to purchasing long-term care insurance, consider what the financial risk would be for incurring out-of-pocket expenses for long-term care.

Many long-term care experts note that the ideal candidates for the coverage are those individuals who can comfortably handle the premiums and the increases that come with them, which are not uncommon in this day and age.

Taking a look at your net worth is an important factor in trying to determine if you should purchase long-term care or not. Review your net worth (excluding your home) and see how much you will have in investments and savings following retirement. Individuals who have less than $500,000 in investments may not be able to afford long-term care coverage.

Another more reliable indicator of affordability is the amount the insurance will cost you as a percentage of your expected retirement income. If the premiums will likely take in greater than 10 percent of your income, you are likely not able to afford the coverage.

While it isn't a perfect predictor, the health background of parents and grandparents can still serve as an indicator of how your future health may unfold. Should your parents experience chronic health problems or other challenges that required prolonged care, this may lead you to consider an LTC policy.

Prior to purchasing a policy, consider the limitations and features of the policy

It is wise to favor policies that offer comprehensive home health-care coverage and coverage for nursing homes. Another thing to look at is inflation protection, which is a feature especially important for boomers who are looking into this coverage.

Another option to consider is instead of purchasing long-term care insurance, think about using the money you would pay in long-term care premiums to invest in other manners.