Long-term care refers to services that are required by individuals suffering from a chronic illness, disabling condition, or cognitive impairment. These services are generally needed for an extended period of time and are not intended to cure or heal the individual receiving them. Long-term care services range from assistance with routine personal activities such as bathing, dressing and eating, to skilled care that addresses medical needs and is performed by medical personnel such as therapists, nurses or physicians.
Because people are living longer, there is a greater possibility that more of us will need long- term care. Studies indicate that 70% of people over 65 will need long-term care for three years and 20% will need care for five years or longer. Of those, more than two-thirds will need nursing home care, which averaged $80,000 annually in 2009 according to the U.S. Department of Health and Human Services. If costs increase 3% annually for the next 20 years, price of a one year nursing home stay rises to more than $135,000.
Medicare does not cover the cost of long-term care. As a result, our team works with clients to help mitigate the financial impact of long-term care through long-term care insurance. Policies offer many different coverage options, and our advisors assist clients evaluate their financial situation and determine the coverage that is most appropriate and affordable. Factors to consider can include:
* Long Term Care Insurance offered through RJFS and Woodforest Financial Services, Inc.
These policies have exclusions and/or limitations. The cost and availability of Long Term Care insurance depend on factors such as age, health, and the type and amount of insurance purchased. As with most financial decisions, there are expenses associated with the purchase of Long Term Care insurance. Guarantees are based on the claims paying ability of the insurance company. Please consult with a licensed financial professional when considering your insurance options.