Long-Term Care

What long-term care means

Long-term care is help with the everyday activities most of us take for granted — bathing, dressing, eating, moving around safely — when a chronic illness, disability or memory loss makes them difficult. It can be provided at home, in an adult day program, in assisted living or in a nursing home, and it can last for months or years.

Care can be expensive, and Medicare and regular health insurance generally do not pay for this kind of ongoing help. Planning ahead gives you more say in where and how you receive care, and protects the savings you worked hard to build. Many people would rather receive care at home, surrounded by familiar things — and a thoughtful plan can help make that possible.

Ways to pay for care

People generally pay for long-term care in one of four ways:

• Personal savings and income, which can be drawn down quickly.
• Medicaid, which has strict financial eligibility rules and may limit your choices.
• Family caregiving, which comes at a real cost to the people providing it.
• Insurance, which can help protect your savings and widen your choices.

Insurance options include traditional long-term care insurance, hybrid policies that combine life insurance or an annuity with long-term care benefits, and life insurance riders that let you use part of the death benefit for care.

How a policy works

Coverage typically begins paying when a licensed health professional certifies that you need help with at least two activities of daily living, or that you have a severe cognitive impairment such as dementia. The key choices are:

• The benefit amount — how much the policy pays per day or per month.
• The benefit period, or the total pool of money available.
• The elimination period — a waiting period, much like a deductible, before benefits begin.
• Inflation protection, which helps your benefit grow over time.

Some policies also offer shared benefits for couples, so one spouse can draw on the other’s benefits if needed.

How we help

We start with your wishes: where you would want to receive care, who you would want involved and what you want to protect. Then we explain the options in plain English, compare policies from the insurance companies we represent, and help you apply. Because long-term care touches your retirement income, your Medicare coverage and your legacy plans, we look at the full picture with you.

Things to consider

• Plan while you are healthy. Changes in health can limit your options.
• Talk with your family. Share your wishes, and let them know where your documents are kept.
• Balance the benefit with your budget. A policy you can comfortably keep is worth more than a larger one you might have to drop.
• Ask about care at home. Make sure the policy covers care in the setting you would prefer.