What Is A Long Term Care Event And What Can I Do To Be Financially Prepared?

Posted by on April 12, 2012 | No Comments

What is a long term care event? A long term care event is any services required to care for a patient with a chronic disease or disabilities that prevent them from performing daily tasks on their own for extended amounts of time. These services can include medical, nursing, custodial, or social services that family and friends are not able to assist them with on a daily basis. Long term care usually refers to the elderly, but it can be used for any age.

This type of care can be either inpatient or outpatient. Typical inpatient care is conducted in nursing home and assisted living environments. Outpatient care, on the other hand, is conducted in the home of the patient, usually in the form of adult day care and other in home assisted living services. The level of care required by the patient is the determining factor in selecting the type of care needed.

How much do these services cost? They are not cheap. As health care prices increase, so do the charges associated with these cares. Simple adult day care and in home assisted living programs typically cost $20,000 to $50,000 each year. Inpatient services like assisted living start at around $50,000 annually while nursing homes can charge well over $100,000 per year. Due to these high costs, families often do not have the choice but to cut hours or even quit to save money. Other family members may have to work more to cover costs.

But there are things that you can do to be prepared. Choosing the right insurance coverage is one step to being prepared. The sad fact is that Medicare and most private insurance companies will not provide coverage for long term care. They will usually only provide care up to a certain amount of time or money, and then you are left on your own. On top of that, they will generally pay for only the medical related expenses, leaving everything else to you. They may not even cover chronic illnesses or disabilities.

Long term insurance is one option to help cover the expenses of long term care. Long term care usually incorporates care that is chronic and will not be cured. Private insurance companies will only provide benefits up to an extent and that is when long term insurance can help reduce the costs to you.

If you are in need of money, another possible option is to use life insurance settlements. There are several ways to get life insurance settlements before the patient passes away. Most life insurance companies will settle the amount early for a reduced amount. Some will even give a cash advance on the settlement for a fee. If your life insurance company does not offer either of these options, viatical settlement companies will pay a percentage of the life insurance settlement to you, but they will require the patient be terminally ill and that you to sign the life insurance policy over to them.

Seeking long term care is very expensive and hard on families. Gathering information and researching your options will decrease the amount of financial burden that you will incur if such services become necessary.

Searching all over for comprehensive long term care insurance information ? We’ve got the inside skinny in our complete retirement strategies guide.

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