A > A

Long Term Care Insurance

Long-Term Care Insurance

What Is Long Term Care Insurance?

Long Term Care Insurance provides you with the ability to pay for the costs associated with long term care.

Consider the following...

The cost of long-term care can range from $50,000 to $100,000 per year, depending on the type of care received and length of time required for care. The average facility stay is around two years, while the average length of care in your home is four years.

The median cost per person based on these averages is about $195,000.

Consider these statistics about 2016 national long-term care costs:

  • The median daily rate for a private room in a nursing home is $253 (or $92,345 annually).
  • The median daily rate for a semiprivate room in a nursing home is $225 (or $82,125 annually).
  • The median Hourly rate for Home Health Aids is $20.
  • The median Hourly rate for homemakers/companions is $20.
  • The median Daily rate for Adult Day Health Care is $68.
  • The national monthly median for an individual residing in an assisted living facility is $3,628 (or $43,536 annually).
  • SEE 2016 STATE AVERAGES HERE
  • SEE 2016 SURVEY COSTS OF COSTS HERE

Source: Genworth, 2016.

Click this link to view the costs of long-term care throughout the United States. (See more detailed information on the Resources page.)

Long-term care is probably not what you think it is.

Most people assume it is care received in a nursing home. While this is true, the majority of care is provided in your home or in an assisted living facility.

The likelihood of one needing some form of care is almost 70%.

"Almost 7 in 10 people will need some long-term care, such as home care, assisted living, or nursing home care after age 65."

Retirement at the Tipping Point - Ken Dychtwald, PhD

Why Do You Need Long Term Care Insurance?

There are a lot of good reasons:

  • You realize your are getting older and and may need help someday
  • You want to stay at home as long as possible
  • You have seen what happens to people who do not have it
  • You do not want your family to take care of you
  • You do not want to spend your life savings on long-term care services
  • You want to leave an inheritance for your children
  • You know its the smart thing to do
  • Chances are you will live longer than you thought

Many people will exceed the average life expectancy for their age group. Here are your odds:

Male, 65 Living to 85 - 50% Living to 92 - 25%
Female, 65 Living to 88 - 50%

Living to 94 - 25%

Couples, Both 65 One will live to 92 - 50% One will live to 97 - 25%
Source: American Society of Actuaries - 2005

 

Why You Should Consider Long Term Care Insurance

Long Term Care Insurance will allow you to:

  • Protect your assets
  • Qualify for Arizona's long-term care Partnership program
  • Maintain choice and independence
  • Ensure the highest quality of care during the most vulnerable stages of your life

Total percentage of adults who say they are concerned about the quality of life as they get older:

  • Losing their health - 73%
  • Losing the ability to take care of themselves - 70%
  • Losing mental abilities - 69%
  • Running out of money - 60%
  • Being a burden on their family - 54%

 

Important Considerations Regarding Long Term Care Insurance

To motivate Americans to be responsible for their own long-term care needs, the Federal government and most State governments have authorized tax incentives for purchasing and using qualified long term care insurance.

If you qualify:

  • Premiums paid for tax qualified plans are included in the definition of "medical expenses" and thus may be eligible for an income tax deduction subject to certain limitation.
  • Even more important, the insurance benefits you receive are paid income tax-free.

Medicare excludes paying for custodial care services, and Medicaid requires you to spend most of your income, retirement savings, and other assets before assistance is offered. Therefore, our government's encouragement to purchase private insurance is a cost-effective way to pay for services.

Why? It is a financial necessity!

The risks are high and the impact to your finances and family when you need long-term care services can be severe. A lifetime's worth of savings can be spent quickly. Without insurance benefits, family members have to make difficult decision about how and when to liquidate assets to pay for care. By using insurance benefits, the decisions surrounding paying for care are much easier for everyone.

Insurance is a safe, secure, affordable option to pay for care, allowing choices in providers, and helping you avoid putting your family in a difficult position as a primary caregiver.

How Much Coverage Should You Consider?

You may be surprised to learn that Long Term Care Insurance may be more affordable than you think.  Choose an insurance company to help pay for the services you need in the setting that is right for you - whether in your home, an assisted living facility or a nursing home.

What Does Long Term Care Insurance Cost?

Long Term Care Insurance is not a standard plan for all. It is custom designed for you - based on your needs, finances and protecting your assets.

Please complete our Contact Us form or call AZInsurance 4U to determine what is the RIGHT plan for YOU.

This is a Time When Waiting Until Later Costs You More Money!!!

Long term care rates are based on your age; therefore, the time to purchase is NOW. If you wait until after your next birthday, your rates will only be higher.

To find out more about Long Term Care Insurance and about qualifying for tax incentives, complete the Contact Us form or call AZInsurance 4U.

When Choosing an Advisor

When choosing an advisor to help your purchase your Long Term Care Insurance, the advisor should:

  • Be Life and Health licensed
  • Be up to date on Continuing Education
  • Have 10 years or more in the industry
  • Have the ability to broker more than one company
  • Be interested in educating, not selling
  • Have a high degree of professionalism
  • Have a zero pressure personality

AZInsurance 4U has all of these requirements!

Contact AZInsurance 4U For More Information

Call AZInsurance 4U today to help you protect your nest egg, keep what you have earned and help ensure a financially sound future for the surviving spouse or family member. 

For your free consultation, click here for a contact form, give us a call or send an email.

Our Phone Numbers Our Fax Number Our Email Address Complete Our Contact Form

480-830-4691 (office) - 480-277-2308 (cell) - 480-830-4689 (fax)

Frequently Asked Questions

Here are frequently asked questions about Long Term Care Insurance and our expert answers for you.

I don't ever plan on needing long-term care. Why do I need to consider this coverage?

No one ever "plans" on needing something as complex and expensive as long-term care. There are many out there who now wish they had purchased coverage while they were insurable. They now realize that the cost of their care is far more than they can comfortably afford and is hundreds of times more expensive than the insurance coverage that they could have purchased.

What if I never use the coverage, what happens to the premiums I've paid in?

Long Term Care Insurance offers a return of premium rider; however, generally speaking, this insurance is like car, health and auto insurance in that if you do not file a claim, you are not entitled to your premium payments back. Another alternative is to purchase a life/long-term care combination policy that pays out a death benefit if the benefits are unused. This typically requires a lump sum premium payment.

Am I healthy enough to purchase Long Term Care Insurance?

Long Term Care Insurance is one of the more difficult to qualify for. An average of 1 in 4 people are declined for coverage. The best way to find out if you are insurable is to contact AZInsurance 4U and provide us with your health history and medications. You can do so by calling us or completing our Contact Us form.

Are there alternatives to Long Term Care Insurance?

There are alternatives such as life/long-term care, annuities and other financial products that can help transfer the risk away from your money. Give us a call to discuss these options.

Doesn't Medicare pay for long-term care?

Medicare is health insurance for people over the age of 65 and for the disabled. It is not "long-term care" coverage. In order for Medicare to pay for care, one needs to meet specific Medicare guidelines including (but not limited to) recovering, spending 3 nights in a hospital, and requiring skilled care. If one qualifies, Medicare pays a maximum of 100 days.

Why can't I rely on Medicaid (welfare) to pay for my care?

Relying on welfare for care means that one gives up choice and potentially quality of care. It is a great option for those who rely on the system and are used to this standard of care; however, for those who have planned a lifetime and who have experienced quality healthcare, this option is far less attractive.

How much coverage should I buy?

How much coverage depends on what you are trying to protect, what you can afford, and your goals.

What if I am insurable but my spouse is not?

It is more critical than ever in this case for the healthy spouse to purchase coverage to ensure that your resources are available for the uninsurable spouse in the event he/she needs care - instead of spending the resources on the insurable spouse.

What age should I be when I begin considering Long Term Care Insurance?

The average consumer now purchases Long Term Care Insurance at age 58.  Some people buy it at younger ages, but it is a good time to begin to consider coverage when you are in your 50's.

We represent many top rated companies with Long Term Care Insurance.