People are living longer these days. That’s good news. But, the longer people live, the more they are at risk for developing serious health problems. It is troublesome to consider the possibility of health problems and the need for assistance with basic daily activities, such as eating, bathing and dressing.
But, statistics show that by the year 2020, 12 million Americans will require long term care. Not only that, approximately 19 percent of Americans over age 65 will experience a chronic physical impairment requiring long term care.
Many employers are offering their employees long term care insurance. This insurance is designed to help pay for medical and nonmedical care services that would otherwise be paid out-of-pocket. Some policies cover only nursing home care while others include coverage for a range of services, including treatment in an adult day care center or assisted living facility, medical equipment, and formal and informal home care.
“Employers can distinguish their benefit plans and offer valuable long term care coverage to their employees more affordably than they may expect,” says Paula Symons, an account executive for JRG Advisors, the management company for ChamberChoice. “Also, you can offer coverage to retirees, spouses, parents and parents-in-law. And generally, employees don’t have to pass any medical requirements.”
Smart Business spoke to Symons about long term care and how to ensure that your golden years are truly golden.
What is long term care?
Long term care refers to a wide array of medical care, personal assistance and social support services for people who are physically or mentally unable to independently care for themselves for an extended period of time.
This care can be provided in a nursing home, assisted living facility or in one’s home. Though long term care is generally for older people, a younger or middle-aged person who was in an accident or suffered a debilitating illness might also need long term care services.
Long term care insurance protects policyholders against incurring large out-of-pocket expenses by paying affordable premiums. Long term care insurance can be made available to employees on a group or individual basis. Whether or not an employee needs long term care insurance depends on their age, health status, overall retirement goals, income and assets.