This blog post is more for the benefit of family caregivers rather than their care recipients. Do you know the difference between “long term care insurance” (LTCI) and regular “health insurance” (HI)? It’s important to understand how they differ because as we age, most of us will benefit from having access to care.
If you are caring for an older loved one and they don’t have LTCI, although they may be able to purchase a plan, it may be too expensive for most. The best time for a person to purchase a plan is in your 40s or 50s. This is when the rates are lower and you have fewer illnesses to deal with.
LTCI differs significantly from the traditional health insurance that you get from your employer. It’s specifically designed to cover services that assist with daily living activities like bathing, eating, and dressing, which are not typically covered by health insurance. Health insurance, on the other hand, primarily covers medical expenses like doctor visits and prescription drugs.
The need for long-term care insurance arises because many health insurance policies don’t cover support for activities of daily living (ADLs) and related needs. The costs of long-term care, such as home health aides or nursing home facilities, can be substantial. For instance, a home health aide might cost around $5,000 per month (in 2023), and a semi-private room in a nursing home nearly $8,000 per month (in 2023). With a 65-year-old having a nearly 70% chance of needing some form of long-term care, this insurance becomes a crucial financial safeguard.
When considering LTCI, it’s important to understand that it can be bought either as a standalone policy or in combination with a life insurance policy. The cost varies depending on factors like age and health rate class. It’s recommended to start looking for a policy around age 40 for better rates.
So, while health insurance is essential for your typical medical and healthcare needs, long-term care insurance is key for protecting yourself and your family against the high costs associated with ongoing personal care needs when you yourself are older and need care. This understanding is vital for you as family caregivers in planning for the long-term well-being of yourself and your loved ones as you continue to age.
Bryan Williams
Physical Therapist
is a licensed therapist with near 30 years of professional experience treating a diverse patient population in a multitude of settings. With simple strategies, he educates and empowers his clients with simple strategies to help them move better and with less pain.
