Long term care: What you need to know, and how you can pay for it

Aging in America can be physically and financially debilitating. People 65 and older have a 68 percent probability of becoming disabled in a way that will affect at least two activities of daily living, according to the AARP report Beyond 50: A Report to the Nation on Independent Living and Disability. The median national cost for nursing home care is about $77,745 per year, a 2011 Genworth Cost of Care Survey by CareScout (C) revealed.

It's likely that many baby boomers may need long term care services in the next few decades. In fact, the U.S. Department of Health and Human Services and U.S. Department of Labor predicts the number of people in long term care (whether at home or in assisted living or nursing facilities) will double by 2050 to 27 million people.

Not everyone who needs long term care will have the financial resources to pay for it, meaning they will either not receive needed services or will require public assistance to obtain basic levels of care. For many, long term care insurance can be a solution.

What is long term care?

As we age, our ability to take care of ourselves may change. For some people, age and physical disabilities will leave them unable to adequately care for themselves. That's when they could require long term care assistance from others.

Long term care can be achieved in several ways, including:

* In-home care - A person requiring care remains in their own, or a relative's home, where family members or paid, skilled professionals provide assistance and care. In-home care is often the least expensive option for long term care.

* Assisted living - Assisted living facilities allow occupants to live independently while receiving on-site support for daily basics.

* Nursing homes - Nursing homes provide more skilled and intense care, supervision, medication, therapies and rehabilitation for patients with the highest level of needs.

Who needs long term care?

At least 70 percent of people older than 65 will require some long term care, according to the U.S. Department of Health and Human Services National Clearinghouse for Long Term Care Information. Patients may require help as part of the normal aging process, or they may experience a medical crisis - such as stroke, Alzheimer's, rheumatoid arthritis or an automobile accident - that makes long term care necessary.

Long term care may be needed by those who experience an injury or illness that keeps them from being able to handle the activities of daily living, such as eating, bathing, dressing, getting in or out of bed, grooming, or using the restroom.

How can you fund your own or a loved one's long term care?

One of the most compelling concerns about long term care is how a family will pay for it. The time to consider this question is before the need arises. Experts agree that having a plan for how you will pay for long term care can make the transition easier when the time comes and you need to make a decision about it.

Some people assume their children will take care of them in their old age, and support from family is an important part of long term care. But few families may be able to shoulder the entire cost of long term care. Public programs, such as Medicare, can offer some support, but many people over-estimate the funding that will be available to them through these programs. Personal assets such as retirement savings and trust funds can help defray costs, but will only last a limited time - especially if the patient requires nursing home care.

For many families, long term care insurance (LTCi), can be a smart planning decision. LTCi can help with the expenses of home care, nursing home or assisted living facilities, or adult day care. It can help minimize financial risks associated with extended care and help eliminate uncertainty for your family.

You'll need to speak with an LTCi professional to get an accurate quote on the cost of coverage, but generally, a year's premium for long term care insurance costs far less than shouldering the entire cost of a year's worth of long term care for yourself and a loved one. You can learn more about long term care and long term care insurance at websites like www.longtermcare.gov and www.Genworth.com.