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What is Long-term Care Insurance?

What is Long-term Care Insurance?

There are roughly 76 million baby boomers in the United States with an approximate average age of 60 years old. It is no secret, as people age, they may require assistance for activities of daily living. Understanding this concept and considering the large population of aging baby boomers, insurance carriers have created a product to help reduce the costs of long-term care. This product is called long-term care insurance (LTCI) and this article well help educate anyone who is considering purchasing this product. 

What is Long-term Care Insurance (LTCI)?

Long-term Care Insurance (LTCI) is an insurance product, which helps to cover the expenses associated with long-term care beyond a predetermined period of time. People who require long-term care are those who have an inability to preform two or more basic activities of daily living.

Activities of Daily Living (ADL):

1. Mobility - ability to "transfer" your body. For example, a persons ability to walk or get out of bed. 

2. Bathing & Showering - the ability to shower yourself

3. Dressing - the ability to dress yourself

4. Feeding - the ability to feed yourself

5. Personal hygiene - the ability to brush your teeth, comb your hair, and other grooming practices. 

6. Bathroom - the ability to use the bathroom independently. This includes being able to get to the toilet and your ability to get up off the toilet. 

If a person is unable to complete two or more of these activities of daily living (ADL) then they are eligible and would certainly benefit from long-term care. 

Who does Long-term care insurance (LTCI) benefit?

Long-term care insurance has many benefits for various people. A common misconception is that long-term care insurance is a benefit only for the person in which the policy is meant to insure.

This is not the case!

Actually, the family members of the insured are the ones who benefit the most. In many cases, long-term care is expensive so when a loved one is no longer able to perform two or more actives of daily living the responsibility of caring for this person often falls to family members. Depending on their financial situation, some families cannot assume this responsibility and cannot afford to hire professional help. 

By purchasing LTCI a person is not only protecting themselves but also the financial well-being of their loved ones.

What does Long-term care insurance (LTCI) cover?

Long-term care insurance covers certain expenses for those who participate in any of the following care facilities:

  • Home Care - this allows a person who requires help with ADL to receive aid right in their own home.
  • Adult Daycare - this is a non-residential facility, which caters to adults who require help with ADL.
  • Hospice care - this services provides care to support people with advanced or terminal illnesses. 
  • Nursing homes - private institutions, which provide aid for elderly people and/or people who require help with ADL.
  • Assisted Living  - provides housing for elderly people and/or people who require help with ADL.
  • Respite Care  - temporary care for a person who requires aid with ADL.

Does my health insurance and/or medicare cover long-term care insurance?

No, traditional health insurance and medicare does not cover you for long-term care. Although under certain financial circumstances medicare may cover a portion of long-term care, an individual will still have to cover the costs of the majority of long-term care expenses themselves.

There is a price associated with everything. The important thing to remember is that if you require long-term care this could really become a financial burden to yourself and your loved ones. Be prepare, be protected and please do not underestimate the impact of long-term care insurance. 

For more information contact Skyline Risk Management, Inc. at (718) 267-6600.

Americans Still Underestimate the Risk of Disability

Americans Still Underestimate the Risk of Disability

Most people lock their doors when they leave the house and when sleeping. You probably brush your teeth on a daily basis to prevent cavities and gum disease. Wearing sunscreen is commonplace when enjoying the great outdoors. Going to the gym ensures one becomes healthier and happier. The risks of not going to the gym outweigh the pain of the gains for many.

While Americans are relatively cautious in certain ways, some fail to realize the actual risk of disability. Research has shown only 40% of Americans hold some form sort of income protection stemming from in the form of disability insurance. This means three out of every five people you work with won't receive an income if they become disabled in the future.

Statistics Meant to Scare

Think about this: the risk of having your home broken into is one in 36, but the risk that a 20-year-old today will find themselves disabled before they retire is one in four. You're nines times more likely to become disabled than your to have your home broken into,. yet, everyone has insurance against robberies. Meanwhile, Only only 40% of individuals are protected against disabilities.

Understanding Insurance in the United States

Americans protect their families and assets with a variety of insurance policies. With the variety of policies and plans available, you can cover nearly every one of your bases these days. Nearly 87% of Americans have health insurance. Over 71% of us have rental or homeowner's policies. Even 61% of the people in the United States have dental coverage.

However, only 40% of people have disability insurance. It's hard for to come to grips with this statistic. , especially when Dental dental plans are not more important that than disability coverage.

For the Family

Americans value family. You value your family – just like everyone else values their loved ones.  And no one doubts that income is a vital aspect of a family's overall well-being. One in four people knows they could not cover their bills and family expenses for even a one month if they didn't have income,.  yet, most people refuse to protect their income against disability. That's a significant risk many take, and one that could easily be avoided with proper disability coverage.

Employers Have a Role

Dental coverage can be cheap, especially when it's tacked on to the end of a health plan filled with benefits. Thus, many employers offer dental coverage, and many Americans keep their teeth clean. However, Disability disability coverage is different. Many find disability insurance a bit pricier than other complimentary complementary policies.

For this reason, many employers skimp on the disability component of insurance coverage or do not encourage employees to sign up. Don't let this happen! Individuals cannot protect themselves against threats they aren't planning on, a. And most people don't expect to become disabled.

Take Things Into Your Hands

It's imperative to inform employers of the importance of disability coverage for their employees. Make sure you employers understand the grave financial disaster one's that can befall a family can incur if disability strikes you.

Employers can benefit by integrating medical benefits and disability insurance. In doing so, many employers find employees getting back to work sooner after injuries and illnesses. If your company is looking to control absenteeism, this could be the perfect solution.

Ultimately, disability insurance offers Americans an important step to fully protecting their income against disaster, illnesses, and injuries. Disability policies have helped many avoid bankruptcy and offer great peace. 



" 1 in 4 people currently at 20 years of age will become disabled before they retire"


If you have questions about critical illness policies contact Skyline Risk Management, Inc., (718) 267-6600 to voice your concerns.