How Asset-Based Long-Term Care Works
Currently more than 70 percent of people over the age of 65 will need long-term care in their lifetime. Who would take care of you? How would you pay for long-term care? Life insurance with asset-based long-term care benefits could help your family maintain its quality of life and give you a comfortable level of care.
Will you need long-term care? The statistics say more than likely. With the life expectancy continuing to grow, those statistics will grow stronger.
While the numbers say you should prepare for long-term care, how you will pay for it is becoming complex. Medicare, health or disability insurance, long-term care insurance, reverse mortgages, life insurance are just some of the possible sources, but can also have limited benefits.
OneAmerica offers a product, life insurance with asset-based long-term care benefits, that is meant to provide for long-term care needs while also giving the owner benefits beyond that level.
Some reasons life insurance with asset based long-term care benefits might be of interest to you include:
It can be purchased for a single person or two people with benefits available for both
Premiums never increase and your benefits cannot change
Because it is built on life insurance, your policy’s death benefit goes to your beneficiaries if you don’t use it for long-term care
Long-term care protection becomes available when you cannot perform two of the following activities of daily living: bathing, dressing, eating, continence, toileting, transferring or if you have cognitive impairment (such as Alzheimer’s disease)
Choose protection for a specific number of months or get extended, guaranteed lifetime benefits as an option
A broad range of qualifying long-term care expenses means you can receive care in your home, use adult day care facilities or stay at a nursing home or assisted living facility. Covered care also includes qualifying hospice care, respite care, caregiver training and supportive equipment.
How much long-term care insurance do you need?
The amount of long-term care coverage you need will depend on your retirement funds, other incomes, part of the country you receive your care and the type of care you want.
A number of those parameters are moving targets. Some are not. For example, women average longer long-term care needs (3.7 years) than men (2.2 years).
When it comes to creating an amount of coverage, here is a series of questions that can help you narrow the range of the coverage you may need in the future:
Has a family member ever needed long-term care?
Is there a family history of long-term illnesses?
Does the long-term care policy need to cover the entire expense?
What changes need to be made to your home for long-term care?
How much of your care can be provided by family?
Are you willing to enter an assisted living facility or nursing home?
What assets do you want to pass along?
Long-term care terms to know
Activities of Daily Living (ADLs): Actions functioning individual can perform on a daily basis: bathing, dressing, eating, moving to and from a bed or chair, and using the restroom.
Elimination period: Amount of time at the beginning of a disability during which a long-term care policy does not pay benefits. Similar to a deductible on an auto or home insurance policy.
Functional eligibility: It is the assessment of a person’s care need to determine
Group home (also known as Board and Care home): Residential private homes with at least one caregiver onsite at all times. Most residents need support with meals, housekeeping, or personal care.
Hospice care: Short-term care for people who are terminally ill and have a life expectancy of six months or less.
Nursing home (also known as long-term care facility): Licensed facility that provides nursing care to those who cannot take care of their ADLs.
Source: OneAmerica Financial Partners, LLC (2015)
The companies of OneAmerica®: American United Life Insurance Company®, The State Life Insurance Company®, OneAmerica Retirement Services LLC, McCready and Keene, Inc., OneAmerica Securities, Inc., Pioneer Mutual Life Insurance Company®, OneAmerica Asset Management, LLC, and AUL Reinsurance Management Services, LLC®.
© 2015 OneAmerica Financial Partners, Inc. All rights reserved. OneAmerica® and the OneAmerica banner are all registered trademarks of OneAmerica Financial Partners, Inc.