What Is LTC Insurance

Nov 13th, 2013 | By | Category: Long Term Care Insurance

Long Term Care

(Used with Permission – Xeror@wikimedia)

If Alex Trebek from Jeopardy asked the following question, “What depletes a non-contested estate”, the answer would be “what is ltc”.

LTC stands for long term care, it is one of the most expensive types of health care due to the full time staff that is required to look after the elderly or incapacitated, and due to the length of care required.  In order to qualify as long term care dependent, you should be unable to perform 2 of the 7 of the daily activities that an independent person would be capable of.

The 7 tasks of daily living are as follows:

  1. Feeding – You are not able to feed yourself and need help doing so.
  2. Toileting – You require assistance when the use of a toilet is needed.
  3. Bathing – You can’t bathe yourself without someone helping you.
  4. Transferring – You require assistance getting in and out of a chair, your bed, your bathtub and so on.
  5. Dressing – You need assistance to dress yourself.
  6. Continence – You are unable to control you bladder or bowels, or cannot keep a certain level of hygiene.
  7. Assistance – You require aids to improve your daily living, such as a walker, wheelchair, adjustable beds, and so on.

Private long term care facilities are extremely expensive, and I certainly would not want to go to a government funded facility, due to the minimal funding that they receive.  So what can you do if private long term care is a requirement, and you want to help preserve your estate for your family?  Well, I guess someone in your family could help look after you, right?  I don’t know about you, but here are my thoughts on my son or daughter having to clean me if I am incontinent, if I have messed the bed, if I can’t bathe, no thank you, my dignity is as important as my estate, so I don’t want my kids having to do this for me, so I need another alternative that helps my estate and preserves my dignity.

This is where long term care insurance helps, as you can insurance yourself so that you can afford the care that you might need at an advanced age, or even if you are incapacitated through an accident.  LTC will pay you a weekly benefit for private care at a facility, at home or a combination of the two.  So now I can preserve my dignity, but there is a cost to LTC insurance, so this will still deplete my estate, correct?  The short answer is yes, however there is a way to get around this, and that is to add a rider to your LTC insurance, which will return your premiums at death, which means the funds are now part of your estate once again.

So the choice is yours

  1. Government facility.
  2. Your family.
  3. A private long term care facility funded through insurance that doesn’t deplete your estate, and preserves your dignity.

Here’s a hint, wealthy people choose option 3.  I hope this has answered the question, what Is LTC insurance?

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