Long-term care can be a very emotional topic. After all, no one wants to think about himself or his loved ones who are unable to live for themselves. However, if you are making a smart financial decision and want to protect your savings, long term care insurance is a must.
Take Joe and Susie, for example. They weren’t always smart, but they worked hard and saved $300,000.
At the age of 67, Joe developed Alzheimer’s disease. At first, it wasn’t that bad. Susie used some of her savings to hire a home care specialist to help Joe for a few hours each day. But when his condition worsened, Joe had to go to a nursing home.
Sadly, Joe died at home after five years. Susie, now 72, is in very good health for her age but has to work full time because her husband’s stay in the nursing home has eaten up most of her savings.
What Is Long Term Care?
As people get older or get sick, sometimes they need help with daily chores like getting dressed, taking a bath, etc. Long Term Care (LTC) provides these services to people, but it is expensive. According to the Alzheimer’s Association, the estimated cost of end-of-life care in 2016 ranged from $217,820 to $341,651.1. Most health and disability insurance does not cover long-term care, but long-term care insurance does.
The Alzheimer’s Association estimated the cost of end-of-life care to be between $ 217,820 and $341,651 in 2016. Simply put, long-term care is expensive.
What Does Long-Term Care Insurance Cover?
- Home nursing care
- Assisted living facilities
- Childcare for adults
- Home Care Home modification
- Coordination of care
Why Do You Need Long Term Care Insurance?
Did you know that 52% of people who turn 65 today will need long-term care at some point? Getting long-term care insurance can help calm you down. They will know that when you get sick you can afford the care you need and still have enough money to eat for yourself and your spouse. Plus, your children don’t have to pay large amounts for their care.
Now you might be thinking, what about government programs? You can not help me? Don’t make the mistake of thinking Medicare will cover the cost of long-term care. It is not like that. And while Medicaid, the government program for people who really have no money, covers the cost of long-term care, this should never be your first choice. Doctors across the country are reducing the number of Medicaid patients they admit each year, making access to health care much more difficult for Medicaid recipients than for those with private insurance.
Note: It is common for people to try to trick the system by removing assets from their parents’ names so that the government pays for LTC. This is considered fraud, a federal crime, and the government will prosecute! The government is already struggling to pay with Medicaid. Do you really want the government to pay for your long-term care? Never!
Types Of Long-Term Care Insurance
The average cost of a room in a semi-private nursing home across the country is $ 85,775 per year, according to the Genworth Cost of Care Survey 2017. Assisted living costs $45,000 per year and Home health aides charge you $135 per day.4 Traditional long-term care insurance ensures that no matter where you need care, you have the money to cover at least part of the bill. A long stay in a retirement home is less likely to deplete your savings or destroy your wealth.
According to a survey by LifePlans, Inc., the average annual premium for long-term care insurance is $2,727. This provides a home care benefit of $161 per day for a number of years (four are the most common) .5 Better yet, you can include an inflation tab that will increase your daily utility over time. generally 3% per year. The policy begins when you can no longer do two of the six activities of daily living, such as B. Dressing, bathing, eating, using a wheelchair, etc., or if you have a severe cognitive impairment. Benefits begin after a waiting period of 30 to 90 days.