Long-term care (LTC) insurance is coverage that provides nursing-home care, home-health care, and personal or adult daycare for individuals with a chronic or disabling condition that needs constant supervision. LTC insurance offers more flexibility and options than many public assistance programs, such as Medicaid.

KEY TAKEAWAYS

• Long-term care insurance usually covers all or part of assisted living facilities and in-home care for people with a chronic condition that needs constant care.
• It is private insurance available to anyone who can afford to pay for it.
• Long-term care insurance offers more flexibility and options than Medicaid.

Understanding Long-Term Care (LTC) Insurance

Many people are unable to rely on children or family members for support and buy long-term care insurance to help cover out-of-pocket expenses. Otherwise, long-term care expenses would quickly deplete the savings of an individual and/or their family.
While the costs of long-term care differ by region, it is usually very expensive. In 2020, for example, the average cost of a private room in a skilled nursing facility or nursing home was $105,850 a year, according to a report on long-term care by Genworth. A home health aide costs an average of $54,912 annually.

In the United States, Medicaid provides for low-income individuals or those who spend down savings and investments because of care and exhaust their assets. Each state has its own guidelines and eligibility requirements. In most states, you can keep up to $2,000 as an individual and $3,000 for a married couple outside of your countable assets, which include checking and savings account balances, CDs, stocks, and bonds. No one LTC situation is the same, we offer individual planning that includes premium pay or lump sum options.

Some of the companies we represent are: