Long-term Care

Insurance and The CT Partnership For Long-term Care: The Missing Link In Retirement Planning

Planning. This is the key word when it comes to preparing for retirement. But while many people plan ahead to assure financial security through retirement, they may be missing a crucial element: how to pay for long-term care (LTC).

When someone needs LTC a tremendous amount of support is needed from family, friends and other providers to help meet the individual’s needs and retain a sense of dignity and respect at, most likely, one the most difficult times of their life. LTC is non-medical, personal care that assists an individual with their daily activities of living, such as bathing and dressing. LTC is meant to manage and not cure a condition. In addition, LTC is very expensive. The annual cost of nursing home care in Connecticut averages close to $150,000 . The bill for a typical nursing home stay – based on the average stay of 2.5 years – can be more than $370,000. For individuals with Alzheimer’s disease or other cognitive impairments, nursing home stays can be much lengthier resulting in significantly higher costs. Home care and assisted living care can also be very costly. Unfortunately, Medicare, and other health insurance programs, do not cover LTC. To cover costs, many people exhaust their lifetime of accumulated savings or forfeit their independence by transferring assets to family members in order to qualify for Medicaid, the major public payer for LTC. However, Medicaid is the government’s health plan for the poor. While it covers LTC, it also requires that an individual “spend down” most assets to $1,600 before qualifying for assistance.

But there is an alternative that can help protect your life savings