Myth: Only the elderly need to think about long-term care insurance.
Reality: Illness or injury can strike at any age and 40% of those who need long-term care today are working adults younger than age 65. People of any age may need assistance with routine daily activities as the result of a serious injury or illness. Long-term care insurance is designed to help them prepare for the possibility of this expense.
Myth: Most long-term care is received in nursing homes.
Reality: Of those receiving benefits from a long-term care insurance policy, 70% do so in a private home or in a community-based setting, such as an adult daycare center.
Myth: I can rely on Medicare or Medicaid to cover my long-term care bills.
Reality: Medicare currently pays just 12% of all nursing home costs, and only provides for those who are disabled and/or older than age 65. Medicare only pays limited amounts (for a certain period of time) for skilled care following a hospital stay of at least three days. Medicaid helps those in financial need and will not pay for long-term care until you have depleted your assets below Medicaid thresholds.
Myth: I can save enough to cover my long-term care expenses.
Reality: The cost of long-term care can add up:
- The average nursing home cost per year is within the $30,000 to $150,000 range.
- The average cost per day for an assisted living facility is $60 to $70.5
- The average cost per year for home health care is $16,000.6
Myth: Disability insurance will cover my long-term care expenses if I become disabled.
Reality: Disability income protection insurance is designed to replace a portion of your income should you become disabled due to a covered injury or illness. It is not intended to cover the expense of long-term care.
Myth: My family can take care of me.
Reality: Many people are not fortunate enough to have family members close by to help care for them. Families today are leading busy lives many are two income households with no time to fulfill the role of caregiver. Would your family be able to take on additional responsibilities?
Myth: Long-term care insurance is not affordable.
Reality: The younger you are when you purchase long-term care insurance, the lower the premiums. There is a benefit to planning early.
1 America’s Health Insurance Plans (AHIP), "Guide to Long-Term Care Insurance," 2002.
2 Passing the Trust to Private Long-Term Care Insurance, American Council of Life Insurers, January 2003.
3 Americas Health Insurance Plans (AHIP), "Guide to long term care insurance," 2003. [cited September 2004]; available from: http://membership.hiaa.org/pdfs/2003LTCGuide.pdf .
4 Attorney Joseph L. Matthews, "Long-Term Care Facilities," [Cited September 2004];available from: http://www.nolo.com/lawcenter/ency/article.cfm/ObjectID/361824E8-DC7B-4A3D-ABF9CBA2BD5CCF65/catID/BFE84B26-9700-4B05-8789C10C1784B06E .
5Attorney Joseph L. Matthews, "Long-Term Care Facilities"
6 Attorney Joseph L. Matthews, "Long-Term Care Facilities"
