Long Term Care is for a person who is chronically ill or disabled.
The risk of losing assets due to a house fire is about 1 in 1,200. The risk of a major loss from an automobile accident is about 1 in 240. The risk of a major LTC expense is 1 in 5.
According to MetLife, a nursing home costs $56,880 nationally. That figure is slightly higher in Arizona. The cost for In-Home care is about $37 per hour, if you utilitze a licensed practical nurse. A licensed home health aide costs about $18 per hour.
1 in 3 men who live to age 65 will spend at least 3 months in a nursing home. 52% of women who are now age 65 will spend their last days in a nursing home. The average nursing home stay is 2.5 years.
27% of baby boomers think they are covered for LTC but only 6% of the elderly actually have insurance.
In 20 years, it is estimated a nursing home will cost $350,000 annually.
Long Term Care insurance pays for “custodial care”. That is, things like dressing, eating, bathing, going to the bathroom. LTC can be provided in the home, in the community, an assisted living facitlity, or nursing home.
Mistakenly, many American’s believe they are covered by either Medicare or Medicaid.
Medicare DOES NOT pay for custodial care (assistance with eating, bathing, walking, going to the bathroom, etc). Medicare only pays a limited amount for medically skilled nursing care or home health care. In addition, you must meet certain conditions for Medicare to pay for even these types of care.
Medicaid is a state and federal program for the poor. If you have assets, you would first need to spend down nearly all of your personal assets before Medicaid kicks in. For those wishing to pass assets on to a spouse or children, this option leaves alot to be desired.
A person could self-insure. But at a cost of approximately $56,000 per year, how long could your assets last? Consider the average nursing home stay is 2.5 years. The best solution is to request a Long Term Care Insurance Quote.
The best solution is Long Term Care Insurance. Get a Long Term Care Insurance Quote. Like life insurance, LTC is best when purchased younger and in better health. Present or past health issues could cause you to be uninsurable. Remember, according to MetLife, only 6% of elderly have LTC insurance. The next generation must be more diligent and better informed.
A Long Term Care Insurance Quote can give you options from which to choose the right plan for you.