While most Americans are aware of the need to save for retirement and invest in a life insurance plan to protect their families in the case of their death, many are unaware of the need for long term care insurance. The fact is, millions of people will need long term care at some point in their lives, and many standard insurance plans do not cover its costs. Therefore, a long term care plan should be considered in estate and financial planning.
As individuals age, they often require extensive care, whether that is medical attention or assistance with every day activities such as eating, dressing and personal hygiene. The cost associated with either in-home care, which can also include housework and medication supervision, or moving to a long term care facility can be extremely high. Though some individuals can turn to their adult children or other family members for care, many either do not have that option or do not want to burden their loved ones with their care.
Unfortunately, many adults either are not aware of the costs associated with long term care or do not think they will need such assistance, and are therefore financially unprepared for these needs if and when they arise. The majority of Americans will require some kind of long term care in their lifetime and many will need care for more than three years.
Medicare only pays for such care if the individual requires skilled services or rehabilitative care. It will usually only cover 100 days in a nursing home and will not pay for any non-skilled assistance, which usually makes up the majority of long term care services.
Because of this, individuals should consider supplementing their long term care needs with an insurance plan.