What You Need to Know About Long-Term Care Insurance

Like most people, you probably don’t want to consider the possibility of someday entering a nursing home. But you should. According to the National Bureau of Economic Research, 50-year-olds have a 53 percent to 59 percent chance of eventually moving into one. And that can get expensive since a semi-private room will cost an estimated $123,823 per year by 2030. That’s why you should consider long-term care insurance.


What is long-term care insurance?


Long-term care insurance covers certain assistance you might need after experiencing a disability or chronic condition. This could include the cost of a nursing home, hospice, adult daycare, or assisted living facility. You often qualify for a long-term care policy after losing the ability to perform at least two standard activities of daily living. These activities include:

  • Eating
  • Bathing
  • Walking
  • Using the Bathroom
  • Dressing
  • Caring for Incontinence
  • Getting In and Out of a Bed or Chair


What doesn’t long-term care insurance cover?


This type of policy usually doesn’t cover issues related to addiction and war injuries. It also might take a while to get coverage for pre-existing conditions—such as cancer or heart disease. Also, some policies may only pay benefits for a certain amount of time, called an elimination period. Others may have maximum benefit limits. So, you need to understand your specific policy and how it works.


Is it possible to add long-term care to a life insurance policy?


Yes, that’s one option. Instead of buying traditional long-term care insurance, you can add a rider to a new or existing life insurance policy. This can be an expensive option, possibly costing a one-time premium of $75,000 or more. But these riders can pay up to multiple times the rate in benefits. Plus, if you never use the coverage, your heirs may receive a death benefit.


Other long-term care riders may draw on the death benefit to pay for care. However, this coverage tends to have exclusions, and you may only receive benefits after meeting certain criteria.


We’re sure you have plenty more questions about long-term care insurance. Any Hibbs agent will happily provide answers and help you find the coverage that suits your needs. Call now.