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    Does Health Insurance Cover Long Term Care?

    One concerning fact about retirement is this:


    It is riddled with misconceptions that could turn into expensive mistakes.


    One such misconception is that health insurance policies cover long term care expenses. After all, these services fall under medical care, right?


    This creates a false sense of security that could lead many baby boomers too relaxed in planning for the substantial costs that come with long term care. “Why should I purchase a long term care policy when I already have health insurance?”


    However, these two policies—although both integral parts of retirement—cover different needs. They serve different purposes which we will get into today. Remember that high health literacy paves the way to successful aging, so let us all work together to challenge these misconceptions.

    Let’s first take a look at what health insurance really covers:
    Health Insurance


    Understanding Health Insurance

    What is health insurance?

    Perhaps, the most common understanding of health insurance policies is that they cover medical and surgical expenses incurred by the policyholder. These often cover services like annual physical exams, pap smears, inpatient care, emergency room expenses, lab tests, and even prescription drugs.


    Keep in mind that health policies may provide coverage nursing home stay, but there may be a catch. This type of service is often considered an added feature and coverage may be limited.


    These insurance policies are typically offered as part of employee packages. However, some individuals choose to purchase health insurance individually.


    It is also important to note that the benefits of these insurance policies are often tax-free.


    Now, let’s take a look at coverage specifically designed for long term care:


    Long Term Care Insurance


    The Definition of Long Term Care Insurance

    Long term care is, perhaps, one of retirement’s biggest gambles. Baby boomers are often left wondering:


    “How will I pay for long term care?”


    After all, these expenses can sometimes reach up to hundreds and thousands of dollars for just a year of coverage.


    This is where long term care insurance comes in.

    Over the years, long term care insurance policies have received mixed reviews from the public. Some have claimed that these insurance plans cost too much for coverage that they might not even need in the long run. Others who have purchased earlier, however, claim that they are satisfied with their policies and that they did not have to pay for additional services not covered by their plans.


    These policies cover home care, assisted living, adult day care, respite care, hospice care, nursing home stay, and care from Alzheimer’s facilities. Essentially, this policy provides for services that Medicare, Medicaid, and health insurance policies do not cover.


    Health and Long Term Care Insurance


    Baby Boomers Need to Know that…

    Retirement is becoming an uncertain time for baby boomers, and they need to be prepared for all the possibilities that may come their way.


    Bear in mind that life spans are not like how they were five decades ago. Now, people could look forward to 30 more years after retiring at 65. This means having to fund three decade’s worth of expenses—only a few individuals have the financial capabilities to cover those years out of pocket.


    This is why insurance policies are greatly beneficial, especially for retirees. The important part is they need to have a good understanding of what each policy covers.




    Health insurance and long term care coverage are necessary components of a successful retirement. After all, both of these policies work toward one goal: to protect the policyholder’s well-being.


    Find Coverage for Long Term Care Now

    As stated by the Office of Assistant Secretary for Planning and Evaluation, 52% of baby boomers turning 65 will develop a health condition that would require long term services and supports.  Moreover, the average cost that one person will incur is $138,000.


    As you can see, many Americans may not be able to afford these costs easily. In fact, 35 million baby boomers lack retirement savings today.


    This is why proactive planning is a big plus for many baby boomers. Take control of the future by securing coverage now.


    If you need help in finding the right plan to fit your needs, please feel free to contact us by leaving a comment below. We will be glad to help you search for the insurance plans that fit your needs and circumstances.


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