It may be hard to envision yourself needing assistance with day-to-day activities, but chances are you will require some form of long-term care in your lifetime.
Long-term care insurance can provide peace of mind that comes from knowing you won’t have to liquidate assets in order to pay for the care you need. It’s also flexible, allowing you to make important decisions such as when and where you receive the care you need.
Benefits of Long-Term Care Insurance
Skilled nursing care—nursing and rehabilitative care that is required on a daily basis. The care must require a skilled practitioner in order to qualify.
Intermediate care—nursing and rehabilitative care that is required only occasionally, and performed by a skilled practitioner.
Custodial care—doctor-ordered assistance to help insured perform basic activities of daily living (the person giving the assistance doesn’t have to be licensed or skilled).
Home health care—custodial or intermediate care performed at the insured’s home.
Adult day care—assistance provided in an adult day care facility or at home.
Respite care—allows family members who are acting as the primary care giver to take time off by paying for temporary care.
Features of Long-Term Care Insurance
Ability to choose the type and level of assistance you desire if you become disabled or develop a long-term, chronic illness.
Ability to purchase coverage that is guaranteed renewable and non-cancelable.
Ability to lock-in a low, level premium at younger ages.1
Ability to build cost of living or inflation protection into your monthly benefit.
Ability to convert your group coverage to individual coverage without proof of insurability.
Elements to Consider
Long-term care policies generally provide more comprehensive coverage than Medicare supplemental policies. Most policies provide coverage for no less than 12 consecutive months, and are guaranteed renewable.
Individual long-term care policies may differ in the types and amounts of coverage they provide, however, each policy must offer inflation protection. Inflation protection either allows for an increase in benefit levels at an annual rate of not less than five percent, or guarantees the right to purchase additional coverage during specific periods without proof of insurability.
1 Long-Term care insurance premiums are based on age and health. Purchasing long-term care insurance while you are young can help lower your premium substantially.
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Insurance and annuity products are offered through non-bank insurance agency affiliates of Wachovia Corporation and are underwritten by unaffiliated insurance companies.