Long Term Care Insurance

Long Term Care Insurance

Do you have a plan for the long haul?

Ensure independence through all of your years.

Medical science has given us the ability to live almost 15 to 25 years longer after retirement. With the average life expectancy now well into the 80s, people need to be planning for the additional risks that come with a longer life span.One of the main concerns of most retirees is becoming a burden on their children or draining their assets in the case of a Long Term Care need.
One of the greatest risks to retirement planning is the cost of long term care. Most people over the age of 65 will need some kind of long term health care services, such as at home or in an assisted living facility.
Virginia annual averages for long term care costs, April 2016, are:
Type of Accomodation Daily Monthly Annually
Ward $51.88 $1,578.02 $18,936.24
Semi-Private $59.88 $1,821.35 $21,856.20
Private $69.88 $2,215.52 $25,506.24

Seniors spend more on out-of-pocket medical bills than the rest of the population. These may include medical expenses, prescription costs, insurance, doctor’s fees, and more. The cost of long term health care for a person with diabetes, Alzheimer’s, severe arthritis, or dementia, is potentially so high that it could wipe out any assets the person has. The average cost of long term care for a diabetic would be about $200,000 for 4 years and over $400,000 for a person with Alzheimer’s disease.

Have you planned how you would pay for your care if your health changes for the worse? Have you considered the costs of your care on your whole family? With long term care insurance you can be in control of where, when and how you will receive your care.

Are you relying on government subsidies to take care of you? Tight eligibility requirements make it harder for most people except the very poor to receive benefits. Our government with budget deficits should not be trusted to maintain or loosen restrictions as to who can qualify for this assistance.

You’ve spent a lifetime building your assets and estates. Why not take the steps necessary to minimize the risks against it. Using Long Term Care Insurance as a risk management tool is the smart thing to do.


What is it?

Long-term care insurance helps you pay for your extended medical needs in a nursing home facility or in the comfort of your own home.

Who needs it?

Long-term care insurance should be an important part of every family’s planning. While we’d like to think that we will never need long-term care, or that we could easily afford it the statistics suggest otherwise:

70 percent of people over age 65 will need some type of long-term care services during their lifetime.[1]

3 years is the average duration of long-term care needed per individual.[2]

$91,250 is the average annual cost of private nursing home care.[3]

$80,300 is the average annual cost of at-home nursing care.[4]

Traditional medical insurance programs and government medical insurance programs don’t usually provide enough help. According to the Department of Health and Human Services, Medicare only pays for long-term care services for a maximum of 100 days, with a copay after the 20th day, and only if you meet certain criteria.

Medicaid does pay for long-term care, but only if your income is below a certain level, and you meet state requirements.[5]

How does it work?

Knights of Columbus Long-Term Care insurance policies establish a pool of money (also known as a maximum lifetime benefit), which is determined by a number of options that you choose from (see below). That pool of money is then available for you to use to cover qualified long-term care expenses. When the pool of money is exhausted, your long-term care policy ends.

The Knights of Columbus also offers a spousal discount program, through which spouses who apply for long-term care insurance coverage together are eligible for up to a 30 percent discount.

What options do I have?

    • Coverage Type: Comprehensive Coverage – Comprehensive long-term care insurance allows you to use the policy to help cover expenses at home or in a skilled nursing facility.Facility-Only Coverage – Facility-only long-term care insurance helps cover expenses in a skilled nursing or assisted living facility.
    • Benefit Period: 3-Year – Establish a maximum lifetime benefit designed to help cover three years of long-term care expenses.5-Year – Establish a maximum lifetime benefit designed to help cover five years of long-term care expenses. 10-Year – Establish a maximum lifetime benefit designed to help cover ten years of long-term care expenses.
  • Daily Benefit: Working with your Knights of Columbus field agent, you establish the daily benefit amount that the policy provides, based on your budget and your projected need. Your daily benefit amount, combined with your benefit period, will determine your maximum lifetime benefit, all of which will affect your premium.
  • Elimination Period: Long-term care insurance policies come with an elimination period, which serves as your deductible or out-of-pocket amount. You can select a 30, 90, or 180-day one-time, lifetime elimination period, after which time your benefits will begin to be paid.
  • Additional Features and Benefits:A number of special features and benefits – often called riders –  are available on Knights of Columbus long-term care insurance products. An example is the compound inflation rider, which will increase your maximum lifetime benefit annually.
[1] U.S. Department of Heath & Human Services Clearinghouse for LTC Information [2] Ibid. [3] 2015 Cost of Care Survey, Genworth. [4] Ibid. [5] U.S. Department of Health & Human Services