Long Term Care Insurance


Exclusive discounts from REAM for you and your family. 

Educators may be eligible for combined multiple discounts of up to 40% on long term care insurance from the insurance carriers we work with. In addition, REAM offers an additional discount on long term care insurance for educators and immediate family members.

What is long term care?

Should you suffer from a broken or fractured bone, Parkinson's disease, a stroke, Alzheimer's, or other chronic conditions, long term care services can provide assistance with everyday activities such as using the bathroom, taking a shower, dressing, or moving in and out of a bed or chair.

Care can be provided in different settings, including your home, an assisted living facility, or a nursing home.

Who needs long term care?

Anyone can need long term care at any time. An accident or broken bone could require months of recuperation at home. An illness or disease, such as Alzheimer's, might require ongoing care or supervision at home, in the community, or in a facility.

Things can happen—often without warning. That's why it's important to have a plan for your care in place before you need it. Now is the time to look at your options and plan ahead for your long term care needs.

Is long term care expensive?

Paying for long term care in your home or in a facility can be expensive. Recent research suggests that one in every three Americans could deplete their assets paying for their long term care needs themselves. In 2013, the average costs of care Massachusetts looked like this:*

  • In-home care averaged nearly $55,370 per year for 40 hours of assistance a week
  • A year of nursing home care averaged nearly $133,225
  • Assisted living averaged $59,400 per month

These costs are expected to continue to rise. Based on national averages and assuming 5% inflation, one year in a nursing home could cost more than $300,000 in 2030.

How to pay for long term care

There are generally four sources to turn to when it comes to paying for long term care: your family, your savings, the government, and long term care insurance.

Your Family You may plan to rely on family members or friends to provide your care. But wouldn't you prefer to spend quality time with them, rather than getting help with day-to-day needs? Currently, nearly one out of four people in the U.S. provides unpaid care to relatives or friends.* While these caregivers may willingly give their time to care for loved ones, being the primary caregiver can take a toll on a person's physical and mental well-being, and may be a financial drain since that person may not be able to earn full-time wages.

Your Savings Based on the high cost of care, your savings could be depleted over time. If the average length of time for informal or custodial care in the home is four years2, based on the average annual cost of care of nearly $55,370, you could be facing nearly $221,480 for home care. The average stay in a nursing home is about two and a half years.* At an average of nearly $133,225 per year, that could add up to $333,026 or more in 2013.

The Government Medicare generally offers very limited coverage for skilled nursing homes, and only for a short period of time. It is not designed to cover long term care and does not offer significant help with these expenses.

Medicaid does help pay for the cost of long term care services but it is designed as a safety net for the needy. In most states, financial eligibility for Medicaid requires that you have low income and few assets.

For example, in 2013, to be eligible for facility benefits, a typical state will require one to spend down his or her assets to $2,000 excluding primary home.*

Insurance Long term care insurance is specifically designed to help pay for long term care. It can help you preserve your savings and assets while giving you more choices about your future care.

Why consider long term care insurance?

Long term care insurance could be the most practical and affordable method to help cover the potentially high cost of care. A comprehensive long term care insurance policy can help you:

  • Stay in your home as long as possible
  • Protect your savings and other assets
  • Relieve the burden of care from friends and family
  • Maintain flexibility in care options
  • Preserve your quality of life

With long term care insurance, your savings can remain protected, and your retirement plans carried out. Additionally, you may be able to access higher quality care for a longer period of time—without imposing upon family or friends.

What to look for in a long term care insurance company?

You want a company you can count on behind your long term care insurance. A company's ratings, claims paid, and experience are items you should research to learn if that company is solid, knowledgeable, and reliable.

*Genworth Cost of Care Survey 2013