Individual Long Term Care Insurance

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Individual Long Term Care Insurance From Lake Norman Benefits

What Is Long Term Care Insurance?

Long-term care (LTC) Insurance is defined as coverage available on an individual or group basis to provide medical and other services to patients who need constant care in their own home or in a nursing home. Prior to 1983, Medicare paid hospitals using a “retrospective” reimbursement system. Medicare reimbursed hospitals for the actual cost of treating a patient covered by Medicare. Since 1983, Medicare has been using a DRG (diagnosis-related group) of guidelines for payment to the hospital of a lump sum which is determined in advance of the treatment as a “prospective” reimbursement system. This new system has given hospitals a powerful incentive to discharge patients as quickly as possible. Nursing homes and convalescent care facilities have become the recovery center for most patients still requiring nursing care after discharge from the hospital.

The earliest Long Term Care Insurance product was offered in the the 1970’s.

Of the original ten carriers, only two are still offering these products. The early products covered only Nursing Home Care. They were designed to be used with Medicare and included a three day hospital wait and Medicare parallel language regarding skilled care. After switching to DRG in 1983, the hospitals moved toward “sicker / quicker” decisions that resulted in a 40% increase in Nursing Home admissions.*

The next generation of policies in the mid to late 1980’s recognized the need for Home Health Care compensation.

 They integrated contracts which covered the full range of benefits including:

  • Home Health Care
  • Adult Day Care
  • Assisted Living Care
  • Nursing Home Care


These policies were site neutral meaning that the consumer had a choice of where to use the policy benefits.

Although people generally live longer, many require assistance in their later years. Long Term Care services can be provided in:

  • The Patient’s home
  • An assisted living facility
  • A nursing home


Often, the family is no longer able to provide such care around the clock. Family members may not live nearby, they may have other pressing family commitments, or simply cannot get the time off work or away from the home. It is very likely that someone you know needs help with the activities that many of us take for granted while we are still able to perform them – eating, bathing, dressing, etc.

According to the Health Insurance Association of America, 48.6% of people age 65 and older may spend some time in a nursing home and 71.8% of people age 65 and older may use some form of home health care. Additionally, less than 2% of nursing home costs are paid by Medicare with the national average nursing home cost somewhere in the neighborhood of $40,000 per year.

The greatest difficulty with Long Term Care is the lack of preparation for the costs incurred when someone you love requires assistance. Some people can pay the bill out of pocket, others will qualify for Medicaid (welfare), but most people will fall somewhere in the middle. They have worked hard all their lives and now they can lose everything to a nursing home.

A Long Term Care Insurance Policy can help protect your assets from the rising cost of care, allowing you to remain financially and socially independent. Long Term Care can help secure not only your financial future, but also that of your loved ones.


What is the Risk?

What are the Costs?

Long Term Care Insurance

 As with every line of coverage we implement, we represent many different carriers to assist us in providing this coverage.  Our experience has shown that no one carrier is the perfect solution for everyone.  Comparing plans from the top providers in the market place ensures that we get you the best coverage for the lowest cost.  Please email or call us or request a quote.