Long Term Care Insurance

Long Term Care Insurance is designed to protect you and your family against large medical bills when a long term care event occurs. In 2010, the average cost of nursing home care in California was over $100,000 per year. That is over $300,000 for only three years of care. While you are receiving long term care, you will still have to meet your other financial obligations, such as a mortgage and other support for your spouse. If you need long term care, who is going to pay for it? Will you, your spouse, or children be capable of covering your long term care expenses? The most cost effective method of controlling these expenses is to purchase a long term care insurance policy from a reputable insurance company. By doing this, you will not have to deplete your assets (i.e. savings, retirement accounts, etc.) or rely on someone else to cover the cost of care.

How Long Term Care Insurance Works

Long Term Care Insurance is designed to provide you with a Daily Benefit Amount (DBA), i.e.$250 per day. In order to be eligible for benefits, you must be unable to perform two of the six activities of daily living (bathing, dressing, eating, transferring, toileting and caring for incontinence). Benefits begin after satisfying a waiting/elimination period of 30, 60, 90, or 180 days. Benefits can be designed to last for 2, 3, 4, 5, 6, 10 years or lifetime. In addition, there are also special spousal discounts if both spouses obtain a policy and may significantly reduce your premiums.

Please select a topic of interest below:

"An estimated 70% of people who reach the age of 65 will need some form of long term care before they die."
Council of Economic Advisors, February 17th, 2007

"Alzheimer's disease is a serious concern for many families. Nearly one in two Americans age 85 and older may have the disease."
Alzheimer's Disease Education & Referral, Alzheimer's Disease Fact Sheet July, 2006

"The lifetime probability of becoming disabled in at least two activities of daily living or being cognitively impaired is 68% for people over age 65."
AARP. Beyond 50.2003: A Report to the Nation on Independent Living and Disability, 2003 (January 11, 2005)

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Long Term Care Insurance