What is Long-Term Care (LTC)?

Long-term care is defined as any type of extended personal care services that you may need when you are unable to take care of yourself without some type of assistance. This may include home healthcare, adult day care or a stay in an assisted care facility or nursing home.

Why Buy Long-Term Care Insurance?
The longer you live, the greater your chance of needing long-term care. In the past 100 years, average life expectancy in the United States has increased from approximately 47 years ¹ to 77 years of age. ² Statistics show that 43 percent of people 65 and over will stay in a nursing home at some point in their life. ³

With the rising costs of healthcare, you may want to consider protecting your assets from the catastrophic expense of long-term care. The average annual rate for a private room in a nursing home today is $66,000, and the average nursing home stay is 2.4 years for a total cost of about $159,000. ⁴ Would you or your family members have the ability to pay a bill of that magnitude?

When Should You Purchase Long-Term Care Insurance?

Before you need it. The younger you are, the lower your premium will be. Qualifying ages are 18 to 84, however, you should consider purchasing a LTC policy in your 40s or 50s, while you are in good medical condition. If you buy the coverage while you are young and healthy, you can help eliminate the risk of being uninsurable should you develop a medical condition later. At that point, you may have to liquidate your assets to provide for this need.

Buying a policy is a function of your age, health status, overall retirement objectives, income and wealth. Long Term Care insurance is not for everyone. For assistance in determining if this coverage is appropriate for you, contact your local Farm Bureau agent using the Agent Locator displayed on the left side of this page.

What are Some Government-Funded Options?
If you have limited assets to meet your long-term care funding needs, you may have to rely on government programs, such as:

Medicare  – Medicare is primarily rehabilitative and is provided on a short-term basis. Chronic long-term care that extends beyond three or four months is not covered by Medicare.

Medicaid – Medicaid is a welfare program for qualifying low-income individuals. It is funded and administered through a state and federal government partnership. The program is designed to provide healthcare services to eligible recipients including those who are blind, have low income, are recipients of State Supplemental Income payments, are disabled, etc. (For a complete list of eligible recipients, click on the related link on the right side of this page.)

The down side of Medicaid is the mandatory “spend down” necessary for states to recover Medicaid payments for recipients from their estates after they die. This means an individual must liquidate his or her assets to pay for long-term care until the assets have been depleted below the required level for eligibility under the Medicaid program. In short, Medicaid can force the sale of your property or business. ⁵

If you don't qualify for a federal or state government-funded program, a long-term care insurance policy is a way to provide funding for your long-term care needs.

What LTC Options Are Available Through Your Farm Bureau Agent?
Your Farm Bureau agent provides a variety of policies with varying levels of insurance protection that can cover care at home, as well as in assisted living facilities, nursing homes and adult day care centers, such as:

A price-competitive, comprehensive LTC insurance product combining innovation and simplification. The first multi-generational LTC insurance of its kind, providing coverage for up to four family members on a single policy. It is available as a rider (an option you can purchase for an additional cost). It is a helpful product for adult children looking for ways to cover their parents. 6

If you purchase a long term care insurance policy and are carrying out a plan of care prescribed by a licensed healthcare practitioner, you may qualify to receive benefits if you meet one of the following requirements:

Need substantial assistance with two or more of the following: Eating Using the toilet Bathing Dressing Transferring (getting from one place to another, i.e. walking) Continence Need substantial supervision due to a severe cognitive impairment.

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1	“Exploring Psychology” by David G. Meyers, 2002
2	Calculated on the basis of data on life expectancy from UN (United Nations), 2003
3	Who Needs Long-Term Care? http://long-term-care.org/basics?whoneedsltc.php Visited 7/6/06.
4	“Cost of a Nursing Home Room Jumps, Study Finds” by Jane Adler, Chicago Tribune 8/31/2003
5	www.longtermcarelink.net/about_medicaid 7/21/04
6	Familycare II Benefit underwritten by John Hancock Life Insurance Company, Boston, MA 02117