Long Term Care Locations

Working with all the insurance companies that offer Long Term Care Insurance, we think there is a misconception about LTC insurance policies that is the number one reason people do not choose the needed insurance coverage. And the culprit of this misconception are the insurance companies themselves!

Long Term Care Insurance is highly customize-able and flexible, so when you are considering coverage you can choose the exact benefits important to you and your premium cost budget. You can even choose where to receive long term care; at home, in assisted living facilities, senior centers, and yes, even nursing homes. But the LTC insurance companies lead with nursing homes….and no one wants to be in a nursing home! It is easier, and feels better, to just put off a discussion about Long Term Care Insurance.

So we are being transparent here… we “invert the pyramid” and lead off with where most Americans receive Long Term Care… in their homes. That is what people want, and where they feel safest. And it is possible. The other coverages are there, but we like to lead with home care. But before location, let’s understand the 3 types of long term care:

Three (3) Types of Long Term Care

Now, let’s illustrate an overview of locations where people receive long term care. Remember, full transparency, we are starting with care provided in your own home:

What is the average cost of care at these locations? (and why you need LTC Insurance)

Of course, the cost of long term care in these differing locations varies, as the services and care available differ. See these average annual costs surveyed and compiled in November 2019 by Genworth Insurance Company:

Long Term Care Insurance benefit can pay for these costs

Depending on the benefits and options you choose in your Long Term Care Insurance policy, the monthly benefits received if you met the definition of requiring care could be used for all of these different locations where long term care is offered.

When discussing the real value of Long Term Care Insurance with clients we mention the idea of “choices.” Those who need long term care, but without resources or a strong Long Term Care Insurance policy have few. Their choices usually begin with spending down all of their savings to almost nothing. Then relying on Medicaid, a Federal program, to bear the cost of long term care, in a location, and in a way, mandated by Medicaid.

When you have a strong Long Term Care Insurance policy in place, you have many more choices! Can you be cared for at home? If so, you can make that choice, and afford it. At some point do you need intermediate or skilled care? You can make the choice of the location, not Medicaid.