Long term care is insurance that helps clients protect their assets and provide a means to pay for the cost of their care when they need assistance with the activities of daily living. As an advisor, you can offer a wide range of funding and coverage options.

On the left hand side are links for the types of coverages that are available, a glossary of commonly used terms and sales ideas.

What is Long Term Care?

Long term care is generally defined as a chronic condition caused by an accident or illness that renders an individual unable to perform two of the six activities of daily living. These activities are bathing, toileting, transferring (walking), eating, dressing oneself and continence. A person who has been diagnosed with dementia or Alzheimer’s may also meet the classification of needing long term care.

It is not just a concern of the elderly. Approximately half of the people needing assistance with ADL’s are under the age of 65 (see http://content.healthaffairs.org/content/29/1/11.full).

It is estimated that for people who are age 65 or older, that men have a 58% chance and women a 79% chance of needing long term care (see http://www.forbes.com/sites/wadepfau/2016/01/05/costs-and-incidence-of-long-term-care/). The average length of time they need care is 2.2 years for men and 3.7 years for women.

Who Provides The Care?

If the care is provided by a family member, relative or neighbor it is classified as informal care. Formal care is defined as care provided by a licensed health care professional.

Where Is The Care Provided?

Care may be provided in the insured’s home, adult day care, assisted living facility, group home, or nursing home.

Who Will Pay For The Care?

Many clients are under the impression that Medicare will pay for long term care if they need it. However, Medicare only pays for long term care if it requires skilled services or rehabilitative care in a nursing home for a maximum of 100 days.

Assistance with the activities of daily living is considered unskilled (or custodial care) and is not covered by Medicare.

A single individual to qualify for Medicaid is only allowed to keep $65/month and must put any other income towards paying for their care.

Medicaid pays the largest percentage of care provided in an institutional setting. For people living at home, the care is often provided by family members who receive no compensation.