If you – or one of your loved ones – are turning 65, there’s a 70% chance you will require long-term care in the future. With rising need and increasing costs, long-term care can put a substantial strain on your finances. But, what is long-term care exactly?
Activities of Daily Living (ADLs)
It might surprise you to know that long-term care is not focused solely on medical care. In fact, it centers around helping with these six basic tasks (ADLs): bathing, getting dressed, eating, toileting, continence, and transferring.
Other Common Tasks Addressed By Long-Term Care
In our later years, some aspects of our everyday routines may become increasingly difficult or unsafe to perform without assistance. From driving to doctor’s appointments and taking medication to grocery shopping and housework, many seniors find themselves relying on others for help.
“It might surprise you to know that long-term care is not focused solely on medical care.”
Considering Caregiver Options
The majority of people will depend on a spouse, family member, or friend to act as an unpaid caregiver. But when they’re unable to meet the level of care you require, what are your options? Additional home support can be provided by home health aides and nurses, while community resources include adult daycare centers and transportation services. For more comprehensive care, skilled nursing facilities and assisted living facilities offer round-the-clock supervision, but that comes with a high price tag.
Preparing For The Cost Of Long-Term Care
A semi-private room in a nursing home averages just shy of $100k per year, while 12 months in an assisted living facility comes in at around $54k. If you opt for in-home health care, you could be paying up to $80k per year. Don’t expect Medicare to cover your long-term care expenses, their benefits cover a short period (100 days) of skilled care, and that’s generally when you’re recuperating from a hospital stay.
Federal Employee Long-Term Care Insurance Program (FLTCIP)
In December 2022, the OPM suspended applications to the Federal Long Term Care Insurance Program (FLTCIP) for a period of two years. Introduced in 2000, the program currently covers over 260,000 enrollees, many of whom have recently had to choose between paying increased premiums or receiving reduced benefits.
Other Long-Term Care Insurance (LTCI) Options
If you’re purchasing an LTCI policy, the younger you are and the better your health, the lower your premiums will be. Since not everyone will require long-term care, explore hybrid insurance options. These policies avoid the “use it or lose it” pitfall by marrying long-term care with permanent life insurance and allowing you to tap into the benefits you need.
