Long Term Care

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What is long term care?

Services provided to people who are no longer able to take care of themselves due to chronic illness, injury, or the effects of aging. Care is typically provided in your home, a facility, or other community-based setting.

Did you know?

Why is long term care a growing concern?

  1. People are living longer. That’s the good news. The bad news is that people are living longer. The fact is the longer you live the more likely you will need care.
  2. Families are geographically dispersed and women who traditionally took care of parents are now working outside the home.

  3. Government systems are already overburdened. This will only get worse once baby boomers begin to retire. The federal government has recognized this and they are offering LTC insurance to federal employees. We feel that by offering their own long term care program, it appears the government is sending a crystal clear message: Get long term care insurance coverage because we will not be making this an entitlement.

  4. The cost of care keeps going up.

Nursing home average annual costs range from3:

New York City

$126,108

Denver

$55,407

Chicago

$62,608

Boston

$84,717

Miami

$70,810

Wash. D.C.

$84,169

Currently, the average length of stay in a nursing home is 2.8 years4.

For the cost of care in your area, click here.

What Are the Benefits of Long Term Care Insurance?

Long term care insurance helps to give you peace of mind when you need care. A policy can help:

  • Preserve your independence;

  • Protect your assets; and

  • Preserve your freedom of choice.

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1 Health Insurance Association of America 1995
2 American Academy of Actuaries, January 1999
3 MetLife Mature Market Research Institute, Market Study-August, 2003
4 "LTC Choice: A Simple, Cost-Free Solution to the LTC Financing Puzzle"-Center for Long Term Care Financing, September, 1999


Employer Programs

"Recent studies show that lost work productivity due to caregiving is currently costing employers between $11 billion and $29 billion annually." - "MetLife Juggling Act Study." Mature Market Institute MetLife, November 1999

Today, long term care insurance is one of the fastest growing new benefits being offered by employers. Elder care is projected to replace child care as the #1 dependent care issue in the U.S. by 2005, when 1 out of 3 workers will be more concerned with caring for a parent than a child.1 By offering this coverage through the workplace, you are helping to provide a solution to this problem.

Benefits to Employer:

  • The insurance can be offered on a voluntary basis at little or no cost to the employer.
  • The employer does not need to get involved with the billing or administration of the insurance.
  • Company paid premiums can be tax deductible.
  • Long term care insurance coverage is a meaningful benefit that rounds out the overall benefits package and helps attract, retain and reward valuable associates.
  • Increases productivity of employees who would otherwise have to assume the role of long term care provider or coordinator.

We have experience managing the implementation process for companies ranging from small proprietorships to large corporations. Each company is unique and we can help you decide the best policies that make sense for you and your employees.

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Policy Design

Choosing a policy that works for you and your family is typically a five-step process.

Step 1.Choose a Daily Benefit: Ranging from $100 to $500 per day, this is the amount of benefit available to reimburse actual charges. This daily benefit is typically chosen based on the average cost of care in your area.

Step 2.Select a Benefit Period: Typical benefit periods include 2,3,4,5, 6, 10 Year or a lifetime of benefits. This is how long the insurance carrier will pay for your care – you decide which benefit period makes sense for you.

Step 3.Select Inflation Protection: This option determines how your benefits can increase to keep pace with inflation over time. The recommended inflation option* is determined by your age.

Step 4.Choose an Elimination Period (Deductible): This is the number of days that you elect to pay for care before your policy begins to pay benefits. The standard elimination period is 90 days.

Step 5.Optional Benefits and Riders: Based on the select policy design, different carriers offer riders and optional benefits that may compliment your coverage.*

Policy and carrier recommendations are made based on your age, health, cost of care in your area, marital status and financial situation. There is a lot to consider before purchasing a policy. It is important to talk with an insurance professional to discuss your options.

*At additional cost.

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LTC Links & Articles

LTC General Information

Long Term Care Costs

Long Term Care Needs

Long Term Perspective

Check out the Long Term Care E-Seminar found in the "E-Seminars" link!

 

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