Long Term Care is "catastrophic coverage" triggered when one requires assistance with two of six daily living skills: Bathing, Dressing, Toileting, Continence, Transferring (moving from one place to another), feeding oneself (once served). It is also triggered by significant cognitive impairment requiring substantial supervision for safety concerns. Statistics show that more than 30% of people will eventually access their long term care policies.
The cost for care is high, and the value of LTC insurance serves three primary purposes:
Financial Leverage: It allows you to use retirement accounts more effectively, ensuring the ability to leave more available for living in retirement.
Family Direction: It provides a clear plan for the family, removing the "caregiver" burden from relatives.
Quality of Care: It provides the funding to hire professional caregivers or move into a high quality facility, offering freedom to choose better care options.
Medicare does not pay for custodial long term care.