LONG TERM CARE INSURANCE
Do you need Long Term Care Protection?Four major questions must be answered
1. Do you need it?
2. Can you afford it?
3. Which combination of benefits is right for you?
4. Which policy can best provide those benefits for you?What is Long Term Care?
Day in, day out assistance you need when you have a serious illness or disability that lasts
for a period of time causing you to be unable to completely care for yourself .
A continuum of care...Long Term Care services more than just nursing homes:
Adult Day Care Centers
Respite Care
Home Health Care Aide
Personal care Attendant or Chore Services
Assisted Living Facilities
Hospice CareWhat Are The Chances of Needing Long Term Care?
Age 55: The chances are 1 in 10
Age 65: The chances are 4 in 10
Age 75: The chances are 6 in 10What is the average National cost of nursing home care?
Average cost: $138.00 a day
Average stay: 2.5 years
Average cost of 2.5 years: $125,925.00
In 20 years: $345 a day, or $125,000 a year
Note: some of the larger U.S. cities, Los Angeles, New York may be 10, 20, 30, or even 40% higher.
Medicare- and Medicare supplements pay less than 8% of Long Term Care Costs and
it covers only skilled nurse care.
Medicaid- Regulations vary from state to state. To qualify you must "spend down" to
government established poverty levelsWho will pay the cost of Long Term Care?
Your personal savings- Can you afford to gamble?
Long Term Care Insurance- Share the risk with the insurance companyWhat Are The Financial Risks You Face Today?
Your home destroyed by fire:.....................1 chance in 1,200
An auto accident liability suit:......................1 chance in 240
A major medical expense:...........................1 chance in 15
A Major Long Term Care Expense:.............1 chance in 4Most people have insurance to cover the first three risks, what about the fourth?
BREAK EVEN ANALYSIS
Long Term Care can cost from under $100 @ month, to over $1000 @ month.
It can seem expensive, yet consider this-
At 5%
annual compounded inflation,
in 10 years actual real-life care costs could mount to
over $94,000 per year = $7833
@ month.
This means
if you pay $4,700
annual long term care insurance premium investment for 10 years,
you will break even within only
6 months of receiving care.
Just do the math!
The annual
long term care insurance
premium investment is often less than the actual cost
of just one month in a care
situation.
Long term care insurance may
make good financial sense for you.
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