What is Long-Term Care and Why It Might Make Sense for You

Long-Term Care

Protecting Your Legacy

It might be hard to imagine now, but chances are you’ll need some help taking care of yourself later in life. The big question is: How will you pay for it?

Buying long-term care (LTC) insurance is one way to prepare. Long-term care insurance helps cover the costs of a nursing home, an assisted living facility, home health care and other services to assist with daily activities like dressing, eating and bathing. According to the U.S. Department of Health and Human Service, nearly 7 out of 10 people 65 years and older will need long-term care support. Women typically need care for an average of 3.7 years, while men require it for 2.2 years

If you don’t have insurance to cover long-term care, you’ll have to pay for it yourself in most states. You can get help through Medicaid, the federal and state health insurance program for those with low incomes, but only after you’ve exhausted most of your savings.

Know Your Options

  • Standalone Long Term Care policy - Long-term care insurance policies reimburse expenses for services typically not covered by health insurance, Medicare or Medicaid. Common services include home care, assisted living and long- term care facilities. These policies accumulate no cash value, so you must use it or lose it.
  • Hybrid Long-Term Care Policy - Also referred to as Linked Benefit, Long-Term Care insurance benefits with another type of insurance like life insurance or an annuity. It provides a pool of money to pay for long-term care expenses, but if you never need care your heirs receive a life insurance death benefit or the cash value from an annuity.

Planning for the Future

As you make a long-range financial plan, consider adding long-term care insurance to protect your future. Talk to a CBIZ Individual Insurance Solutions advisor about the best long-term care option for you.

Long-Term Care Legislative Updates

Washington is the first state to implement a mandatory payroll tax to cover long-term care expenses. Other states, such as New York, California, and Pennsylvania are scheduled to follow suit. Learn more about the most recent long-term care legislation updates and how this payroll tax could affect you or your client.