In life, we all have times when we need to recover from something. Be it an injury, surgery, or other health complication, these periods of time can be incredibly stressful. Short-term care insurance and long-term care insurance serve to protect you and your hard-earned savings during these periods of recovery.
More people than you think might need long-term or short-term care in the future. According to the ACL, someone turning 65 today has a 70% chance of needing long-term care services within their future. In that 70%, 20% of individuals will need long-term care for longer than 5 years. This can be absolutely devastating for your savings.
The national average of costs associated with long-term care include:
- $225 per day or $6,844 per month for a semi-private room in a nursing home
- $253 per day or $7,698 per month for a private room in a nursing home
- $119 per day or $3,628 per month for care in an assisted living facility
- $20.50 per hour for a health aide
- $20 per hour for homemaker services
- $68 per day for services in an adult day health care center
Some of these costs are not covered under Original Medicare, meaning that they will need to be paid out of pocket. Thankfully, there are supplemental plans provided by private companies that can cover these additional costs depending on a variety of factors.
Short-term care coverage typically covers you for around 1 year maximum, and is much easier to qualify for than a long-term care plan. These plans are provided by private insurance companies and are intended to protect your quality of life over a short period of recovery or treatment. If you’ve been denied coverage for long-term care in the past, you should consider applying for a short-term care plan because the underwriting is less intrusive. They also have lower premiums than long-term coverage, and can provide similar benefits. These plans have different costs depending on your age and income bracket, and are typically cheaper than long-term care because the risk is more limited and manageable for insurance carriers.
Long-term care coverage, on the other hand, is meant to last much longer than short-term coverage, often providing coverage for years. These plans are more expensive, but allow a larger safety net than short-term care coverage can. If you qualify for one of these plans, they can uphold your quality of life and protect your savings while you focus on your treatment or recovery.
Do you have a plan in place for when you might need assistance? Give us a call and we’d love to go over your options with you!
A non-government entity. Not affiliated with or endorsed by any government agency. We do not offer every plan available in your area. Any information we provide is limited to those plans we do offer in your area. Please contact Medicare.gov or 1-800-MEDICARE to get information on all of your options.