what is long term care ltc insurance 
long term care ltc insurance is coverage that provides nursing home care home health care and personal or adult daycare for individuals age 65 or older or with a chronic or disabling condition that needs constant supervision 1 ltc insurance offers more flexibility and options than many public assistance programs such as medicaid understanding long term care ltc insurancemany people are unable to rely on children or family members for support and buy long term care insurance to help cover out of pocket expenses otherwise long term care expenses would quickly deplete the savings of an individual and or their family while the costs of long term care differ by region it is usually very expensive in 2021 for example the average cost of a private room in a skilled nursing facility or nursing home was 108 405 a year according to a report on long term care by genworth a home health aide costs an average of 61 776 annually 2in the united states medicaid provides for low income individuals or those who spend down savings and investments because of care and exhaust their assets each state has its own guidelines and eligibility requirements in most states you can keep up to 2 000 as an individual and 3 000 for a married couple outside of your countable assets which include checking and savings account balances cds stocks and bonds 3 your home car personal belongings or savings for funeral expenses don t count as assets long term care insurance usually covers all or part of assisted living facilities and in home care medicaid rarely does full home care coverage is an option with long term care insurance it will cover expenses for a visiting or live in caregiver companion housekeeper therapist or private duty nurse up to seven days a week 24 hours per day up to the policy benefit maximum most long term care policies will cover only a specific dollar amount for each day you spend in a nursing facility or for each home care visit so when considering a policy read the fine print carefully and compare the benefits to determine which policy will best meet your own needs special considerationsmany experts suggest shopping for long term care insurance between the ages of 45 and 55 as part of an overall retirement plan to protect assets from the high costs and burdens of extended healthcare long term care insurance is also cheaper if you buy it younger in 2021 the average annual premium for a couple both 55 years old was 2 080 according to the american association for long term care insurance 4long term care insurance premiums can be tax deductible if the policy is tax qualified and the policyholder itemizes tax deductions among other factors usually companies that pay long term care premiums for an employee can deduct them as a business expense 5while premiums can cost less if you buy a policy at a younger age you will be paying for coverage many years before you are likely to need it so weigh your options carefully due to the high cost of this product a number of alternative ways of paying for health needs in later years have come on the market they include critical illness insurance and annuities with long term care riders think through what would make the most sense for you and your family especially if you re a couple with a significant age or health difference that could affect your lives going forward if you don t have a financial advisor this could be a reason to hire one who specializes in eldercare issues to work through these issues with you if you can bear to face them it makes sense to do your best to shape your own future instead of leaving it to family members in the flurry of a health emergency 