Scratching your head over Long Term Care insurance?  It can be a difficult decision to think through.  Learn why long term care is fundamentally a woman's issue.

What is Long-Term Care Insurance (LTC)?
What are the chances that I might need it and what costs are involved? 
How are these policies purchased?

What is Long-Term Care Insurance? (LTC)

Let’s begin by saying that long-term care is not one service but many different services that are aimed at helping people with chronic conditions to deal with their limitations, and to assist them in remaining as functionally independent as possible. Some of the services include help with daily activities at home such as bathing or dressing, respite care, and home health care. They may also include services at an adult day care, an adult assisted living facility, or care in a nursing home.

Many people believe this is what Medicare provides. This is simply not true as Medicare is designed to pay for the treatment of acute, short-term illness. It covers skilled nursing care and therapies on a short-term basis. For the most part, it does not provide for custodial or intermediate care.   

What are the chances that I might need it and what costs are involved?

If you are a female your chances of needing long-term care are much higher than a male’s because women have longer life expectancies and often outlive their husbands.

It can be argued that LTC is fundamentally a women’s issue because they are the nations’ appointed caregivers and they are also the highest consumer of paid services. That is, they are more likely to pay for services so that they will not become a burden to their loved ones.

The cost of nursing home care can be very expensive and wipe out your savings in a short period of time.In March 2007, Genworth Financial estimated that the average daily cost of a semi private room in a nursing home is $180.78 or more than $65,000 a year. A private room at $204.95 a day is more than $74,000 a year. These are nationwide averages. Many areas of the country are much more expensive.

Some good news is that our government provides incentives for us to purchase LTC. In 1996, Congress passed a law called the Health Insurance Portability and Accountability Act (HIPAA). This law is designed to give favorable tax treatment for “qualified” long –term care policies. You may be able to deduct part of the premium for a long-term care policy from your taxes as a medical expense. Benefits paid out under a qualified plan will generally not be taxable income. It seems the government wants us to provide for our own needs and rely less on them! Recently, some companies and agencies have started offering the option for employees to purchase LTC as part of their benefits package.