Whether you are shopping for a car, a vacuum cleaner or an insurance policy, it helps to be an educated consumer. To help us get on the same page, you may find it useful to print out this page.

Long-Term Care

What you require when you can no longer take care of yourself due to a prolonged or chronic illness or injury. This care may include help with “activities of daily living,” such as bathing, dressing, eating, toileting, continence or transferring or it can be skilled nursing care.

Continuum of care

Long-Term Care can be received in a variety of locations, including: home, an assisted living facility, an adult foster care home, a home for the aged, an Alzheimer's facility, an adult day care center, hospice care, respite care, nursing home or a continuing care requirement community.

Caregiver

Skilled caregivers include RNs, LPNs and LVNs.

Intermediate and custodial caregivers include home health aids.

Basic caregivers are family members or friends.

The definition of Long-Term Care Insurance

Long-Term Care insurance is an insurance policy or rider designed to provide coverage on an expense incurred (reimbursement) or indemnity basis for one or more necessary or medically necessary diagnostic, preventative, therapeutic, rehabilitative, maintenance or personal care services provided in a setting other than an acute care unit of a hospital. Long-Term Care insurance does NOT require a prior hospital stay before benefits are paid and all policies that are sold today MUST, by law, pay benefits to patients for Alzheimer's disease and dementia.

Home health care

Services received in the home can be health care or personal care services through a home care agency, family member or friend. These services can be medical or non-medical and can include assistance with shopping, meals and companion care. Home health care can be a cost effective choice, and is most peoples' first choice for care.

Assisted living

Assisted Living offers an alternative to nursing home care. Accommodations for Assisted Living are typically an apartment with private bath and kitchenette for individuals or couples, one or both of whom may need help with activities of daily living. Residents are able to furnish and decorate the apartment to their liking and some facilities even allow pets. Residents in these facilities choose to remain independent as long as possible to protect their families from the burden of care giving. This arrangement maximizes the independence and dignity of the individual and their family. These residential care facilities have become extremely desirable over the past few years.

Assisted living residences may have as many as three of four levels of care, and services may include two or three meals per day served in a common dining room, assistance with activities of daily living, housekeeping services and help with ambulating. Medication is dispensed as needed, or medication reminders, and exercise programs are available. There is twenty-four hour security and a staff on call at all times. Daily room and board fees include laundry, utilities and social and recreational services as well as transportation and housekeeping services.

Assisted living facilities can be free standing or part of independent living situations, apartment complexes or included in a continuum of care center in a senior community or nursing home. Costs vary based on location, and are about 75% of the cost of a nursing home.

Who should consider Long-Term Care insurance

Anyone who intends to get older. Go ahead and laugh, but I am not joking. Intelligent, responsible people who plan ahead realize that accidents and illness will happen to younger people as well as the aged. We all need to plan for Long-Term health care, just as we need to plan for the possibility of becoming disabled during our working years. When we are disabled, our income stops but we still need to pay the mortgage or rent, and the same goes for utility and car payments. Disability income insurance provides the income to pay for these expenses. Long-Term Care insurance pays for the care, if we need it, for an extended period. Our health insurance pays the deductibles and co-pays and covers the cost of prescription medications and hospital and doctor bills.

Those who are under age 59 and a half who need Long-Term health care and do not have Long-Term Care insurance will have to draw from their savings, 401k or IRA money to pay for care. Not only will they have to pay taxes on this money when it is withdrawn, but they will also be forced to pay a 10% penalty for early withdrawal. People requiring Long-Term Care who don't have Long-Term Care insurance could lose huge amounts of money if they have not planned ahead.

Younger people should consider Long-Term Care insurance to guarantee their insurability. If we are not insured and our health declines, as is practically inevitable as we age, we could be excluded from purchasing Long-Term Care insurance.

Dorothy McMahon, president of McMahon and Associates, is a Long-Term Care Insurance Consultant in Bloomfield Hills, MI. Reach her at (248) 844-9787 or LTCINSUSA@aol.com.