Long-term care (LTC) insurance pays for services to help individuals who are unable to perform certain activities of daily living (ADL's), such as eating, bathing, or dressing without assistance, or require supervision due to a medical or cognitive condition.
If you're not sure about LTC insurance, consider the following:
- Medicare doe not pay for custodial care.
- In order to qualify for Medicaid, the individual must liquidate all assets down to $2,000.
- If you need assistance, do you have the financial means to afford such care, whether it be home health care, assisted living, or a stay in a nursing home?
- In 2008, the average stay in a nursing home was 2 1/2 years at a cost just under $70,000 per year. The cost is expected to rise to $200,000 by 2016.