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Understanding Long-Term Care Insurance

long-term care insurance

As we age, our health needs change and often become more complex. One of the significant challenges individuals and their families face is planning and paying for long-term care. Many of us will need some form of long-term care as we grow older, and having a plan to cover these costs is a critical part of senior living. This is where long-term care insurance enters the picture. 

What exactly is long-term care insurance, and why is it important? At Franklin Park® Senior Living, we want to make sure that everyone has the resources they need to understand each aspect of developing a care plan for themselves and their future. Here’s our guide to understanding long-term care insurance

Why Long-Term Care Insurance Matters

Long-term care refers to a variety of services designed to meet an individual’s health or personal care needs during a short or long period of time. These services help people live as independently and safely as possible when they can no longer perform everyday activities on their own.

Financial Implications of Long-Term Care 

Long-term care can be pricey. The average cost of a private room in a skilled nursing community is over $100,000 per year, so without the right insurance, these costs can quickly deplete savings and cause financial strain.

Benefits of Having Long-Term Care Insurance

The primary benefit of long-term care insurance is that it can help cover the costs of care services, reducing the financial load on the family. It also provides peace of mind, knowing that you or your loved one will have access to needed care. Additionally, some policies offer benefits such as care coordination, which can help families navigate the complexity of the long-term care system.

Choosing the Right Long-Term Care Insurance Plan

Choosing the right long-term care insurance policy can be daunting due to the range of options available. Here are some factors to consider:

  1. Daily Benefit Amount: This is the amount the policy will pay per day for your care. Consider the care costs in your area and choose a daily benefit amount that reflects these costs.
  2. Benefit Period: This is the length of time you will receive benefits from the policy. This can range from a few years to the rest of your life.
  3. Inflation Protection: This is an important feature that adjusts your daily benefit amount each year to keep pace with inflation.
  4. Elimination Period: This is essentially your deductible. It is the number of days you must pay for your own care before the policy begins to pay benefits.

The Role of Long-Term Care Insurance in Financial Planning for Senior Living

Long-term care insurance should be a key component of financial planning for senior living. It helps protect your savings and assets from the high costs of long-term care and can give you more choices about where you receive care. It can also come in handy for any immediate injuries or health conditions that occur or develop unexpectedly. 

For example, if a retiree didn’t have long-term care insurance but needed intensive rehab and ongoing care in a nursing home after a fall, the cost of care for this type of service could quickly deplete their life savings. This situation could easily have been mitigated, however, if this individual procured long-term care insurance.

Long-term care insurance isn’t just about insurance: it’s about independence, security, and peace of mind in retirement. It’s about knowing you’ll have the care you need in the setting you choose without having to worry about exponential costs. It’s an essential part of a comprehensive financial plan for senior living, and it’s always helpful to remember that the best time to think about your future care needs is before you need them.

At Franklin Park® Senior Living, we encourage you to explore your options, ask questions, and make the choice that’s right for you. Our senior living communities near San Antonio offer unique, luxurious environments for you to enjoy your retirement years or receive a helping hand while maintaining your independence. 

For more information about the importance of long-term care insurance or to learn more about senior living in San Antonio, contact a member of our Franklin Park® Senior Living team today!