Wealth Management
What is Long-Term Care Insurance? Why Do You Need It?
November 09, 2023
Long-Term Care covers a wide variety of services including: in-home care, assisted living facilities, nursing homes, care coordination and adult day care. It might be hard to imagine now, but chances are you will need some form of Long-Term Care (LTC) in the future. With the average cost ranging from approximately $20,000 to $108,000 annually, an unexpected event can deplete an otherwise well-funded savings plan.
Long-Term Care Expenses
Qualified LTC costs include all LTC facilities and in-home care for individuals with a chronic illness or disability. These services can include necessary diagnostic, preventive, therapeutic, rehabilitative and/or personal-care services.
To have a qualified chronic illness or disability, you must be unable to perform two or more of the 6 activities of daily living, such as: eating, toileting, transferring, bathing, dressing, and continence for at least 90 days.
What Benefits are Available to You?
Medicare offers coverage for individuals 65 and older or for individuals who are younger and have a disability. Medicare generally does not cover costs associated with LTC, but, if it does, it will only cover the first 20 days of LTC services after a minimum three-day stay in the hospital.
Similar to Medicare, Medicaid also offers coverage for individuals 65 and older or for individuals who have a disability. You can qualify for Medicaid, which will cover additional LTC costs, after you have depleted your financial accounts; qualification will vary from state to state.
How Can Long-Term Care Insurance Help?
LTC Insurance will reimburse you for the cost of care; this will safeguard your finances and provide you with the flexibility to choose the type of care you want and where you would like to receive it.
Face Your Future with Confidence
Disclosure
Source: https://www.statista.com/statistics/310446/annual-median-rate-of-long-term-care-services-in-the-us/#:~:text=In%202020%2C%2the%20annual%20average,%2C%20or%20at%2Dhome%20care.
The information contained herein is general in nature, has been obtained from various sources believed to be reliable and is subject to changes in the Internal Revenue Code, as well as other areas of law. This material is for informational purposes only and should not be construed as a solicitation of any particular insurance product or insurance carrier. Insurance is sold through Oppenheimer Life Agency, Ltd. (OLA), an indirect wholly owned subsidiary of Oppenheimer Holdings. Before purchasing a policy of insurance, please review both the insurance carrier and the insurance policy carefully before investing. A strategic alliance exists between OLA and various outside providers whereby products and services may be utilized. Such providers may receive compensation as a result of the strategic alliance. However, the firms are completely independent of each other. This material is not a recommendation as defined in Regulation Best Interest adopted by the Securities and Exchange Commission. It is provided to you after you have received Form CRS, Regulation Best Interest disclosure and other materials. Oppenheimer & Co. Inc. Transacts Business on all Principal Exchanges and Member SIPC. 6083532.1