Aging can be beautiful and scary. We may even witness the process with a grandparent and, at some point, with a parent or another family member. We learn about the sacred act of caring for those who are growing old, have become physically infirm, or are suffering cognitive decline.

So, how do we prepare for our aging? We all hope or intend to be in perfect health, but the reality is that we will all need care at some point. How can we prepare for this inevitable future? For our care needs, we should consider elder care or what some call long-term care.

Unlike life insurance or disability coverage, long-term care insurance is not as prevalent when we consider insurance or are even offered insurance as part of our employee benefits. This is despite the fact that the need for elder care may eventually become an important part of all our lives. “In fact, people turning 65 today have an almost 70% chance of needing long-term care assistance in their lives, according to the Administration for Community Living,” as reported by Forbes.

Covering the costs of adult day care, nursing homes, and hospice, elder care or long-term care insurance will cover the costs and associated costs of long-term care. Elder care policies can also take the pressure off the financial burdens of daily activities, such as help with eating and dressing.

There are generally six companies that currently offer standard long-term care insurance policies, says The American Association for Long-Term Care Insurance (AALTCI), as reported by Forbes.

• ​​Bankers Life
• Mutual of Omaha
• National Guardian Life
• New York Life
• Northwestern Mutual
• Thrivent

When determining your eligibility for long-term care insurance, companies will first determine if you qualify. If you’re currently receiving long-term care services, are in poor health, over the age of 80 or have pre-existing conditions, you may not qualify.

Which is why it is imperative that you prepare and seek out information at an early age.

Long-term care insurance policies will have exclusions, so you’ll want to inquire and research whatever policies you’re considering. For example, according to Forbes, a long-term care insurance policy “may only cover care in a state-licensed facility or may exclude care in a rest home or personal care home.”

Long-term care insurance covers:

• Adult daycare centers
• Home health aides
• Hospice care
• Nursing home care
• Occupational therapy
• Physical therapy
• Respite care
• Speech therapy

Long-term care insurance will likely not cover:

• Alcohol or drug addiction treatment.
• Long-term care treatment outside the U.S., though some policies may cover care in Canada and the United Kingdom.
• Mental health or nervous disorders (besides dementia).
• Self-inflicted injuries.
• Treatment in a government facility.
• Treatment that has already been paid for by the government.
• War-related illnesses or injuries.

Depending on the type of long-term care, you could spend close to $7,000 a month or more for a private nursing home room. This is where starting early with long-term care insurance can be helpful. According to Forbes, here are recent figures on the cost of insurance:

• The average LTC insurance cost is $1,900 a year for a 60-year-old female.
• The average cost is $1,175 a year for a 60-year-old male.
• The average cost for a 60-year-old couple is $2,600 annually, combined.

Most people start long-term care planning between the ages of 52 and 64, according to The American Association for Long-Term Care Insurance (AALTCI). However, the earlier you start, the cheaper the costs. It may be prudent to start in your thirties or even as early as when you begin your career in your twenties. 

If you experience a benefit trigger, long-term care insurance will start. Here are some of those benefit triggers:

• Needing assistance with at least two activities of daily living (ADLs) for 90 days.
• Experiencing a cognitive impairment.
• A medical doctor’s recommendation.

“LTC policies often have an elimination period, which is a waiting period that may stretch between 20 and 100 days. The insurance company doesn’t begin paying for long-term care until the elimination period ends,” Forbes reports.

Our health is our wealth, so do look into these options now, for yourself, for parents, and spouses, because long-term insurance may save you a great deal financially for the inevitable future we all face.