Long-Term Care is the custodial care provided for someone who needs ongoing assistance and/or supervision or is unable to perform the normal activities of daily living, such as bathing, dressing, eating, toileting and transferring. The need for Long-Term Care may also involve cognitive impairment, such as Alzheimer’s disease.
Long-Term Care may be received at home, in an adult day care center, an assisted living facility, a nursing home or hospice facility. A 2013 Cost of Care Survey by John Hancock Life Insurance Company revealed that the national average cost for 24-hour home care for one year in a nursing home can run more than $94,200 or $258 a day in a private room.
Since there are no government programs that provide any substantial benefit for Long-Term Care expenses, the majority of the cost will be paid by the individuals needing the care. The U.S. Department of Health and Human Services has estimated that 70% of people over the age of 65 will require some period of ongoing assistance at some point in their lives.
The types of contracts providing Long-Term Care Insurance are:
- Traditional LTC policy
- Asset Based
- Life Insurance with a LTC Rider
- Qualified LTC Annuity
Representative Companies utilized for Long-Term Care Insurance are: