• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

The Potter Law Firm

North Carolina and Kentucky Estate Planning Attorneys

phone iconNC (704) 944-3245
KY (606) 324-5516
Attend A Free Seminar - KY Attend A Free Webinar - NC/SC THIS IS AN ADVERTISEMENT

  • Home
  • About Us
    • About Our Firm
    • Attorney and Staff Profiles
  • Practice Areas
    • Asset Protection & Business Planning
    • Elder Law & Medicaid Services
    • Estate and Gift Tax Figures
    • Family-Owned Businesses & Farms
    • Incapacity Planning
    • IRA & Retirement Planning
    • Legacy Planning
    • Pet Planning
    • Probate
    • SECURE Act
    • Special Needs Planning
    • Trust Administration
  • Elder Law
    • Coping With Alzheimer’s
    • Emergency Medicaid & Nursing Home Planning
    • Guardianship & Conservatorship
    • Hospice Care
    • Medicaid Planning
    • Nursing Home Planning
    • Veterans Benefits
  • Communities We Serve
    • Kentucky
      • Boyd County
        • Ashland
        • Florence
      • Kenton County
        • Covington
        • Fort Mitchell
        • Independence
    • North Carolina
      • Mecklenburg County
        • Charlotte
        • Davidson
        • Huntersville
  • Resources
    • Definitions
    • DocuBank
    • Elder Law
      • Elder Law Links
      • Elder Law Reports
      • Local Elder Law Resources
        • Ashland Elder Resources
        • Covington Senior Resources
        • Huntersville Elder Law Resources
        • Independence Senior Resources
    • Elder Law Reports
    • Emergency Legal Documents
    • Free Estate Planning Seminars
    • Free Estate Planning Worksheet
    • Frequently Asked Questions
      • Estate Planning
      • Frequently Asked Questions for Families Without an Estate Plan
      • IRA & Retirement Planning
      • Legacy Wealth Planning
      • LGBTQ Estate Planning
      • Medicaid
      • Pet Planning
      • Trust Administration & Probate
    • Is Your Estate Plan Outdated?
    • Kentucky Probate Resources
      • Ashland, Kentucky Probate Resources
    • Newsletters
    • North Carolina Probate Resources
      • Huntersville, NC Probate Resources
    • Reports
      • Advanced Estate Planning
      • Basic Estate Planning
      • Elder Law Reports
      • Estate Planning for Niches
      • Trust Administration
  • Contact Us
  • BLOG
Home » Long Term Care » What Is Long-Term Care Insurance?

What Is Long-Term Care Insurance?

April 7, 2022 by John Potter

Charlotte elder law attorney

Creating a comprehensive estate plan requires you to consider several factors that might impact you as you age, including the likelihood that you, or a spouse, will need long-term care. If you do end up needing long-term care (LTC), the cost of that care could put your estate assets at risk if you failed to plan for the possibility ahead of time. One way to protect assets is to purchase LTC insurance. Long-term care insurance, however, is not right for everyone. To help you decide if it is right for your estate plan, a Charlotte elder law attorney at Potter Law Firm explains how long-term care insurance works and what to consider when deciding to purchase a plan.

Why Is Long-Term Care Planning Important?

Long-term care planning should be part of every estate plan given the probability that you will need care and the high cost of that care. When you enter your retirement years (at age 65) you will already stand a 50 percent chance of eventually needing some type of long-term care. With every passing year, those odds increase. If you are married, your spouse shares the same odds of needing LTC. Nationwide the average cost of a year in LTC was over $100,000 for 2021. The average cost of LTC in North Carolina has historically run about the same as the national average. What makes the cost of LTC so problematic though is that neither private insurance policies nor Medicare will cover expenses related to LTC.

Long-Term Care Insurance Explained

One way to plan for the possibility that you, or a spouse, will need to pay for LTC is to purchase long-term care insurance. As the name implies, long-term care insurance is a separate insurance policy that specifically covers costs associated with LTC. Understanding the details of a LTC policy can be challenging, and no two policies are the same.  Before you consider purchasing a LTC policy it is imperative that you are clear on what the policy does cover, and what it doesn’t cover.  For example, a LTC insurance policy may cover some, or all, of the following:

  • Nursing home care
  • Home health care
  • Respite care
  • Hospice care
  • Personal care in your home
  • Services in assisted living facilities
  • Services in adult day care centers
  • Services in other community facilities

Like any other type of insurance, a long-term care insurance policy may also exclude certain types of treatment or care. It is common, for instance for a LTC policy to exclude mental or nervous disorders or diseases, other than Alzheimer’s disease or another dementia. They also frequently exclude alcohol or drug addiction as well as attempted suicide or self-inflicted injuries. While these exclusions may not pose a significant problem, some of the limitations of the policy may.

Things to Consider When Contemplating a LTC insurance Policy

  • The cost you will pay over the lifetime of the policy. Premiums increase the older you are when you take out a policy; however, even a lower annual premium will add up if you are paying that premium for 20, 30, or even 40 years before you use the coverage.
  • Waiting period. Many LTC policies have a waiting period, or “elimination period,” during which time the policy will not cover expenses, meaning you will be responsible for covering them.
  • Maximum benefits. Be sure you understand if the policy has an annual or lifetime maximum because you will be responsible for any expenses that exceed those maximums.
  • Coverage away from home. Will the policy cover you outside of the U.S.? If not, are you planning to remain in the U.S. when you retire?
  • Automatic termination. Some LTC policies terminate at a specific age or after a specific number of years, once again leaving you responsible for additional expenses.

What Is Medicaid Planning?

Only you can decide if long-term care insurance is right for you; however, talk to your estate planning attorney about Medicaid planning before deciding to purchase a LTC insurance policy. The cost of a LTC insurance policy can be prohibitive for many people. While Medicare won’t cover LTC expenses, Medicaid will. Medicaid eligibility can be problematic, though, if you failed to incorporate a Medicaid planning component in your estate plan.

Contact Charlotte Elder Law Attorneys

For more information, please download our FREE estate planning worksheet. If you have questions or concerns about long-term care insurance or other elder law issues, contact the experienced Charlotte elder law attorneys at the Potter Law Firm by calling 704-944-3245 (Charlotte or Huntersville, NC) to schedule your appointment. You can reach our Ashland, KY office at 606-324-5516, and our Florence, KY office at 859-372-6655.

  • Author
  • Recent Posts
John Potter
Latest posts by John Potter (see all)
  • What You Need to Know about the Medicaid Look-Back Rule - January 3, 2023
  • How to Pass Down Your Legacy in Your Estate Plan - October 3, 2022
  • Practical Steps to Take after Receiving a Terminal Diagnosis - September 30, 2022

Filed Under: Long Term Care

Other Articles You May Find Useful

Ashland Medicaid attorneys
If You Don’t Understand the Medicaid Look-Back Rule You May Be in Trouble
The Potter Law Firm
Veterans Benefit Can Assist With Long-Term Care Costs
The Potter Law Firm
Medicaid Planning in Charlotte: What Is the Five Year Look Back?
The Potter Law Firm
Medicaid Planning & Early Dementia Signs
The Potter Law Firm
What Is the Asset Maximum That Medicaid Will Allow?
The Potter Law Firm
Medicaid Trusts: What Are the Disadvantages?

Free Estate Planning Worksheet

There's a lot that goes into setting up a comprehensive estate plan, but with our FREE worksheet, you'll be one step closer to getting yourself and your family on the path to a secure and happy future.
Texting Permission

Follow Us

  • Facebook
  • Instagram
  • LinkedIn
  • RSS
  • Twitter
  • YouTube

Subscribe to Our Blog

  • This field is for validation purposes and should be left unchanged.

Testimonials

default image

Overall The Potter Firm was very professional. They took what could of been a very complicated process and were able to break it down so it was a lot easier to understand. We are confident we now have made the right decisions in our estate planning. Good firm to work with.

DKS & KMS Client Review August 28, 2020

default image

John Potter has been a real pleasure to work with. He is very knowledgeable and explains things in a very simplistic manner so the average person can understand how/why the laws are written. He is very attentive and asks questions in such a way that not only helps him understand your goals, but also helps you think about what type of goals and expectations you should be considering. Exemplary client service.

David J. Client Review August 28, 2020

default image

My husband and I selected Ms. Potter to assist with our small business. She responsive and attentive every time I have a question or need assistance, and is extremely knowledgeable and able to answer any legal question I have had. I know I can count on Ms. Potter for all of my business legal needs and I would highly recommend her to anyone needing legal assistance with such.

Jillian Client Review August 28, 2020

<< Prev
Next >>

Where We Are

Ashland

ASHLAND
1620 Carter Avenue
Ashland, KY 41101-7631
Phone: (606) 324-5516
Fax: (606) 324-4766

Charlotte

CHARLOTTE
15720 Brixham Hill Avenue
Suite 300,
Charlotte, NC 28277
Phone: (704) 944-3245

Huntersville

HUNTERSVILLE
11330 Vanstory Drive
Huntersville, NC 28078
Phone: (704) 944-3245

Northern Kentucky

NORTHERN KENTUCKY
7310 Turfway Road
Suite 550,
Florence, KY 41042
Phone: (859) 372-6655

Office Hours

Monday8:30 AM - 4:30 PM
Tuesday8:30 AM - 4:30 PM
Wednesday8:30 AM - 4:30 PM
Thursday8:30 AM - 4:30 PM
Friday8:30 AM - 3:00 PM

Map/Location

potter_sidbr_map
potter law logo
  • Facebook
  • Instagram
  • LinkedIn
  • RSS
  • Twitter
  • YouTube

The information on this website is for general information purposes only. Nothing on this or associated pages, documents, comments, answers, emails, or other communications should be taken as legal advice for any individual case or situation. The information on this website is not intended to create, and receipt or viewing of this information does not constitute, an attorney-client relationship.

Privacy Policy | Terms of Service | Disclaimer | Site Map | Powered by American Academy of Estate Planning Attorneys

© 2023 American Academy of Estate Planning Attorneys, Inc. THIS IS AN ADVERTISEMENT