Connecticut Long Term Care Insurance

Life changes significantly year after year. We may not notice some of the minor differences in our lives, but others are undeniable. Our children grow older. Our parents need more help.

We may slow down a little, but are still going strong. However, we never know what life holds in store for us. We see our friends struggling with care for their older family members and hope our loved ones don’t face the same issues with us.

Medical concerns associated with aging can take significant time to coordinate.

Between finding the correct care providers and the cost associated, the decisions and stress build quickly. One way to ensure that the necessary care is accessible is to obtain a long-term care insurance policy.

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What is long-term care insurance?

Long-term care (LTC) insurance provides coverage for care when you are unable to complete some of the things you need to do on a daily basis. Referred to as “activities of daily living,” these daily needs include:

• Bathing
• Getting dressed
• Using the bathroom
• Eating
• Moving around the home (transferring)

Coverage may also cover care when cognitive issues cause concerns. LTC is not for medical care, but allows a person to receive assistance with things they need to do to care for themselves.

How does long-term care compare to health insurance?

LTC is not health insurance. For medical care needs, health insurance (including government plans such as Medicare or Medicaid) is needed to supplement costs.

Long-term care provides coverage for assistance with day-to-day needs whether in a facility or at home.

Why do I need long-term care coverage?

As we age the things we had done so easily sometimes become difficult. If your family does not live nearby or you would prefer care by professionals, LTC allows you to obtain the assistance you want.

Depending on your policy, assistance can be any or all of the following types:

• Home care
• Adult day center services
• Hospice
• Assisted living
• Alzheimer’s care
• Nursing homes

If and when you may need assistance with activities of daily living, you will be able to obtain professional care in the setting that you desire. Coverage may also help with “instrumental activities of daily living” such as

• Light housework
• Money management
• Medication
• Preparing meals
• Shopping for necessities such as groceries or toiletries

The help available may keep you comfortably in your home as your grow older.

What is average cost of care in Connecticut?

The cost of living in Connecticut is among the highest in the United States. Cost for care is also at or near the top of the charts.

When we consider how much assistance will cost, then factor in inflation, LTC makes sense to not only help us keep our independence, but help protect our savings and investments.

According to the Office of Policy and Management, Connecticut residents are paying the following for care:

• Private Nursing Facilities: $390/day $142,200 annually
• Adult Day Care (full day): $85/day
• Chore Services: $21/hour
• Therapist (Speech): $145/visit
• Live-in Companion: $211/day
• Skilled Nursing Visit: $137/visit
• Home Health Aide: $30/hour

These services may have a minimum number of visits or hours for care to be received. With an average inflation rate of 5.5%, costs will only increase by the time you need care.

The MetLife Mature Market Institute provides objective consumer advice as well as ongoing research regarding senior care. According their 2012 findings, national averages are:

• $222/day for a semi-private room in a nursing home.
• $21/hour for a Home Health Aide
• $70/day for Adult Day Care.

Costs for care can quickly add up. Without sufficient retirement savings, family members and government programs will need to cover the costs.

What do I need to consider when calculating my coverage needs?

We typically have dreams of living well into our senior years in the comfort of our home surrounded by family and friends. Unfortunately, when the reality of life hits us, we need to ensure that all scenarios are covered. In the event that care is needed, how will we pay for it?

Deciding to obtain coverage is the first step, but you will need to review several other considerations before making the move to purchase a policy.

Review your family’s and your own health history. LTC coverage typically includes underwriting, so you’ll need to know what possible issues lie ahead for you. Bear in mind that women typically need care longer than men (3.7 vs 2.2 years).

Understand your entire financial picture. Will you have enough retirement savings to cover only living expenses? Will you have additional to cover any unexpected medical costs?

Learn about the cost of coverage is in your area, as well as inflation rates.

Review your health insurance policy to understand what types of care are covered.

Think through what kind of care you’d like to receive if and when necessary. Would you prefer to stay home or live among people with similar concerns?

Coverage is based on the cost of coverage per day, then the length of time you believe you’ll need coverage. For example, a $300 per day nursing home benefit for three years. You will need to calculate how much care you will be able to pay for from your own savings without any insurance coverage.

Questions to have answered before buying coverage:

• How is benefit eligibility determined?
• How long must I be unable to perform activities of daily living before I can request coverage to begin?
• What is the waiting period between when care is covered and the policy begins payment?
• Is there a limit to my out of pocket expenses?
• What are the covered services? Am I limited in where I can receive care or from whom?
• Will I be able to receive home care from a family member and have that person reimbursed?
• What are the benefit limitations (both daily and lifetime) of the policy?
• Does the policy include inflation protection?
• Does the coverage include any coordination of benefits, if needed?
• What does Medicare or Medicaid pay for in my state?
• What are the policy exclusions?

Thinking about aging and how it may affect our family and finances is not an easy topic, but a very necessary one. We want to make sure our retirement savings are sufficient to provide for our living expenses, but also want to make sure we can receive the care we need when we need it.

As with any insurance coverage, make sure to research your coverage options thoroughly before making any purchase.

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