Please ensure Javascript is enabled for purposes of website accessibility What You Need to Know about Long Term Care Insurance

Insurance 101: What You Need to Learn about LTCI

Long-term care insurance (LTCI) includes ongoing assistance of a personal or medical nature. Nearly 70% of today’s 65-year-olds will require long-term care at some point in their life, which will have an impact on almost every family. Many people will require long-term care, but not all of them will have long-term care insurance (LTCI).

Because of financial constraints, many people are unable to afford the high cost of long-term care. Traditional employer-provided insurance typically does not cover daily medical expenses and instead only covers medical care provided by doctors and hospitals. 

LTCI may be able to cover some of the costs of receiving long-term care. Read on to discover what you need to learn about LTCI.

LTCI Refers to a Variety of Care Settings

Nursing homes are frequently mentioned when discussing long-term care. 73% of patients receiving long-term care do so in their own homes, rather than in institutional settings like nursing homes or assisted living communities.

A home health aide can provide long-term care to a person who is unable to perform daily tasks such as dressing, eating, bathing, or moving around in the comfort of their own home. Although it is a sobering thought, long-term care insurance (LTCI) can help cover the costs of long-term care. You may be able to receive care in the comfort of your own home instead of having to go to an assisted living facility or nursing home.

LTCI Can Fill in the Gaps in Caregiving

A single conversation cannot tell you whether or not your family is capable of providing long-term care. The cost of providing care is both financial and emotional. 66% of caregivers use their own retirement and savings funds to pay for their loved ones’ long-term care. Furthermore, members of your family may be unable to provide care if they live a significant distance away, have a busy work or family life, or both.

The Chances of Requiring LTCI Are High

70% of people over the age of 65 will require some form of long-term care at some point in their lives. Because of the numerous factors at play, predicting whether you will require long-term care is difficult.

It is preferable to purchase long-term care insurance before you are in your 60s and still in good health, rather than later in life when the premiums may be prohibitively expensive. Individuals under the age of 35 pay lower premiums.

LTCI Costs Are Only Partially Covered by Medicare

Medicare does not pay for long-term care and only pays for in-home health care under very specific conditions.

Following a hospitalization for a related condition, Medicare will cover up to 100 days of skilled nursing home care in a nursing home, but this does not count as long-term care coverage. Once the patient’s condition has stabilized, Medicare will no longer cover any personal or custodial care that the patient may require.

LTCI Plans and Rates Vary

The price is determined by your age as well as the amount of coverage provided by the policy. Long-term care can range from simple assistance with daily activities to 24-hour supervision in a nursing home. The average annual cost of a semi-private room in a nursing home is around $94,900. 

It’s also possible that your retirement savings won’t be enough to cover the skyrocketing cost of long-term care.

According to the American Association for Long-Term Care Insurance, the annual premium for a 55-year-old couple with an initial policy benefit of $165,000 will be $2,080. The premium for a 65-year-old married couple is $3,750 per year.

Thankfully, numerous insurance policies are available to cover long-term care needs. Traditional long-term care insurance policies pay a set amount for each service rendered, such as $100 per day for nursing home care. In most cases, benefits have a time or monetary limit. A pooled benefit plan will give you a monetary total that accounts for all of the services you receive.


When it comes to securing health coverage and adhering to an elderly person’s needs, it’s crucial to plan things ahead of time. With a long-term care insurance package, you decrease health risks while also preventing stressful financial issues amongst you and your family members.

Do you need a life insurance agency in Conyers, GA? The Tabb Insurance Agency is here to give you guidance and professional expertise when it comes to financial situations. Get in touch with us today!