How asset-based long-term care works

Currently nearly 70 percent of people over the age of 65 will need long-term care in their lifetime. Who would take care of you?¹ How would you pay for long-term care? Life insurance with asset-based long-term care benefits could help your family maintain its quality of life and give you a comfortable level of care.

Will you need long-term care? The statistics say more than likely. With the life expectancy continuing to grow, those statistics will grow stronger.

While the numbers say you should prepare for long-term care, how you will pay for it is becoming complex. Medicare, health or disability insurance, long-term care insurance, reverse mortgages, life insurance are just some of the possible sources, but can also have limited benefits.

OneAmerica Financial^℠ offers a product, life insurance with asset-based long-term care benefits, that is meant to provide for long-term care needs while also giving the owner benefits beyond that level.

Some reasons life insurance with asset based long-term care benefits might be of interest to you include:

• It can be purchased for a single person or two people with benefits available for both
• Premiums never increase and your benefits cannot change
• Because it is built on life insurance, your policy’s death benefit goes to your beneficiaries if you don’t use it for long-term care
• Long-term care protection becomes available when you cannot perform two of the following activities of daily living:  bathing, dressing, eating, continence, toileting, transferring or if you have cognitive impairment (such as Alzheimer’s disease)
• Choose protection for a specific number of months or get extended, guaranteed lifetime benefits as an option
• A broad range of qualifying long-term care expenses means you can receive care in your home, use adult day care facilities or stay at a nursing home or assisted living facility. Covered care also includes qualifying hospice care, respite care, caregiver training and supportive equipment

How much long-term care protection do you need

The amount of long-term care protection you need will depend on your retirement funds, other incomes, part of the country you receive your care and the type of care you want.

A number of those parameters are moving targets. Some are not. For example, women average longer long-term care needs (3.7 years) than men (2.2 years).

When it comes to creating an amount of coverage, here is a series of questions that can help you narrow the range of the coverage you may need in the future:

• Has a family member ever needed long-term care?
• Is there a family history of long-term illnesses?
• Does the long-term care policy need to cover the entire expense?
• What changes need to be made to your home for long-term care?
• How much of your care can be provided by family?
• Are you willing to enter an assisted living facility or nursing home?
• What assets do you want to pass along?

Long-term care terms to know

Activities of Daily Living (ADLs): Actions functioning individual can perform on a daily basis: bathing, dressing, eating, maintaining continence, moving to and from a bed or chair, and using the restroom.

Elimination period: Amount of time at the beginning of a disability during which a long-term care policy does not pay benefits. Similar to a deductible on an auto or home insurance policy.

Functional eligibility: It is the assessment of a person’s care need to determine

Group home (also known as Board and Care home): Residential private homes with at least one caregiver onsite at all times. Most residents need support with meals, housekeeping, or personal care.

Hospice care: Short-term care for people who are terminally ill and have a life expectancy of six months or less.

Nursing home (also known as long-term care facility):  Licensed facility that provides nursing care to those who cannot take care of their ADLs.

Learn more terms from LongTermCare.gov