Long-term care insurance
- Medicare and Medigap do not generally cover long-term care expenses.
- Long-term or extended care insurance offers flexibility to cover at-home care, care in an assisted-living facility, or care at a nursing home.
- There are a variety of insurance options to cover long-term or extended care expenses.
Long-term care insurance offers you flexibility in meeting your long-term needs. Learn more about what a long-term care insurance policy is here.
Why long-term care coverage?
- The cost of long-term care can place a burden on you and your loved ones. It can quickly drain away assets meant for a secure retirement — the national average cost of a private room in a nursing home exceeds $92,000 per year.1
- Health care insurance programs such as Medicare and Medigap do not generally cover long-term care expenses, and Medicaid has a "spend down" element that may force you to liquidate assets to qualify. See longtermcare.gov for additional information.
- Relying on loved ones can have an emotional and financial impact.
Long-term or extended care planning with Ameriprise
An Ameriprise financial advisor can help you make informed decisions about long-term care insurance products as well as other options such as chronic care riders added to permanent life insurance policies.
Traditional long-term care insurance
These policies often include additional benefits, such as care coordination, which can ease the care process. Working with your financial advisor, you can choose the coverage that is right for you based on:
- Amount. You select the amount of coverage based on the type of care you prefer (home, assisted living, or nursing home)
- Duration. You determine the coverage period (i.e., 2, 3, 4 or more years)
- Waiting period You may choose the length of time you will self-fund your care
- Inflation protection. You may select among options that allow your coverage to grow over time
- Coverage options. You may elect more options at additional costs such as pooled benefits for couples
Life insurance with long-term care benefits
Some life insurance solutions may provide an option for long-term care coverage at an additional expense, allowing you to accelerate the death benefit to pay for long-term care expenses. This option generally offers more long-term care coverage than a permanent life insurance policy with a chronic care benefit rider. Benefits include:
An optional extension of benefit rider for long-term or extended care expenses that continues benefits beyond the policy’s death benefit and an optional inflation protection benefit is also available.
- A wide range of long-term care benefits including home care services, assisted living, adult day care and nursing home facilities
- Return of premium in case your situation changes
Life insurance with an optional chronic care rider
If you have a life insurance need as well as a long-term care need, you may want to consider a permanent life insurance policy with a chronic care benefit rider (available for an additional cost). A chronic care rider:
- Allows you to use benefits either for long-term care expenses while living (with potential tax advantages) or, after you are gone, as an income tax-free death benefit to your loved ones
- Benefits are paid after an elimination period is satisfied. Care can range from in-home care to assisted living to full-time care in a nursing home
- Decreases the death benefit of the life insurance policy as you use the available benefit to pay for chronic care costs
Take the next step
To determine the type and amount of long-term care protection that's right for you, talk to a financial advisor.
Ameriprise Financial can help you protect against the unexpected with our own RiverSource® life insurance or insurance offered through other providers.