The potential need for, and cost of, long term care (LTC) presents a significant emotional and financial risk to every person.
The older you get, the more likely you are to need long term care. And long term care services are expensive. In 2016, the average annual rate for a private nursing home room was $92,378 or $253 per day with numerous areas of the country reaching well over $100,000.1 Most people opt to receive care at home, but even that can be costly with the average annual rate being $46,332 for about 44 hours of care per week.
For many, long term care insurance can be an effective solution to help protect retirement assets and personal savings. The benefits and resources provided by an insurance policy may also alleviate some of the care-giving burdens from loved ones.
FCMM has partnered with Newman Long Term Care to help address the need for insurance for staff members of Evangelical Free Churches and ministries as well as other FCMM-participating organizations. Newman LTC is known for their proven experience and exclusive focus in this area. They work with many of the leading insurers, giving you one trusted resource to explore all your options.
What is long term care?
It’s estimated that nearly 70 percent of those ages 65 and over will need long term care at some point in their lives. This means most will need some form of assistance with daily living tasks for an extended period of time due to accidents, chronic conditions, or cognitive issues.
There are many misconceptions that health insurance or Medicare will pay for long term care. However, health insurance covers only doctor and hospital bills. Medicare pays for 100 days of care but only when certain requirements are met. Some people believe they can rely on Medicaid, but in order to receive coverage, their assets must be depleted to poverty levels.
Will I need long term care?
Many hope that LTC will never be needed, but often don’t consider what would happen to their family if they are wrong. Family caregivers can be negatively impacted emotionally, physically, and financially.
Caregivers are twice as likely to have a chronic illness compared to the general population.2 Studies show that caregivers are more likely to suffer from depression while they are providing care and long after the care is finished.3 Because care is expensive, caregivers themselves may be left with financial burdens.
Why plan now?
Long term care insurance (LTCI) helps to ensure that you are provided the care you need when you need it without having to spend down savings or alter lifestyles for you and your family.
Rates for LTCI are based on health. The younger you are the lower premiums will generally be. The older you are the more likely you are to have health concerns. Almost half of the people ages 70 or older who apply are not eligible because of their health.
LTCI applicants declined due to poor health
- Under age 50: 9.5%
- Ages 50-59: 14.0%
- Ages 60-69: 23.0%
- Ages 70-79: 45%
- Ages 80 and over: 66.0%
Most insurers offer preferred discounts to those in exceptional health. Although the majority of applicants are issued with standard rates, if you qualify as a preferred customer, you could receive a discount of 10 percent or more.
Waiting too long to purchase a policy can be both costly to afford and risky to qualify.
