Why People Fail to Plan
- The natural tendency to avoid thinking about becoming dependent on others for your care
- Misinformation about the risks of needing care
- In addition, most people don’t like to think about getting older, developing a disability, becoming less independent, or needing help with personal care. Unfortunately, there is a reason that the following adage is so often cited: “Those that fail to plan, plan to fail.”
- Ignorance regarding the cost of care and of payment options
Understanding the Product
LTC can provide personal and custodial care for an extended period of time. The trigger for this is the help with or loss of at least two activities of daily living (ADLs). These include six categories: bathing, dressing, eating, transferring, toileting, and continence.
The “loss of ADLs” could be the need for substantial assistance, whether it’s hands-on, standby, or supervisory. Any cognitive impairment, such as Alzheimer’s and dementia, are automatically covered whether or not the two-ADL trigger is met.
A common misperception of long-term care is that it’s the same thing as nursing home care. While care may be received at a nursing home, it can also be used at an assisted living facility, adult daycare, with respite services or for home-based care.
Care can be defined in two ways:
- Care for custodial (personal) needs — Care provided to assist with ADLs or to meet personal needs, such as assistance with bathing, dressing, eating, or getting out of bed.
- Care for skilled needs — Care provided by a licensed health care professional such as a registered nurse, physical therapist, or speech therapist. This care must be ordered by a physician.
- LTC is a tool that can help preserve and protect financial assets, provide flexibility to choose the type of care, offer the ability to choose where care is received, help to ensure high-quality care, and provide financial and emotional support for the family. There are six areas to consider regarding the need for an LTC policy.