Long-term Care Insurance: Security for Us citizens

Health Care Crisis in America

A health care crisis is looming on the horizon for many Us citizens, one that could bring financial and emotional devastation that would make cruising gas prices and bouncing share markets pale in comparison.

The problem? Based on Metlife, 70% of people over the age of 65 will need some form of extended care just before they die, whether it’s a going to nurse in the home or full-time medical home care. According to The Alliance for Aging, “nearly 9 out of 10 Americans will have at least one chronic condition” by age 65. Thanks to modern medicine, these conditions are devastating, but not immediately fatal. Most elderly people express concern about paying for required care in the face of such a condition, yet few do anything about it.

Laura Moore, senior vice president regarding long term care insurance at Ruben Hancock, says the issue is “increasingly essential because Americans are living longer, care costs are rising, and firm pensions are being cut back. ” Moore says that Americans are “not facing the reality of what is situated ahead. ”

If you need extended treatment, but are unable to pay for it, the burden may fall to your families. The psychological, physical, and financial drain of caring for a sick parent is really traumatic that, according to the American Alzheimer’s Foundation, 60% of family treatment givers die before the person they are caring for! Furthermore, if you are placed in the nursing home without the funds to pay for the bill, you risk not only your life long savings, but also your family home and even your life insurance.

Knowing Long Term Care

Long term or prolonged care refers to care that is needed beyond the time period covered by Medicare or even major medical insurance. It is often provided inside a nursing home, but can also be offered in a person’s home or in an assisted living facility.

The cost of assisted living, nursing home care plus professional home health care is high and climbing yearly. A the year 2003 study conducted by Metropolitan Insurance coverage found the average rate to be $180 per day or $66, 000 each year for a private room in a nursing home. Care in an assisted residing facility averages $30, 288 annually while professional home care would certainly cost $166, 440 a year intended for round the clock care at $19. 00 per hour. Due to inflation, by 2021, nursing homes may cost as much as $175, 000 per year.

There are three strategies to surviving these high costs associated with extended care. You can be rich enough to pay all costs yourself, participate in a spend down to exhaust your own assets and qualify for Medicaid, or you can purchase Long Term Care insurance (LTCi).

Long Term Care Insurance

LTCi is an insurance program that pays for extended care when Medicare and private major medical is exhausted, or even for intermediate or custodial treatment which are not covered by Medicare or even major medical at all. The most comprehensive programs cover home care, aided living, and nursing homes. Simpler programs provide home care only and are also less expensive.

The care usually involves assistance with daily activities such as eating, outfitting, walking, bathing, moving from bed to chair (called transferring) and taking advantage of the toilet, or, in the case of cognitive impairment, simply sitting with a person to prevent him from danger to themselves.

Regardless of the type of plan preferred, is actually like any other kind of insurance. You can purchase it once you actually need the particular care.

Making the Decision for Long Term Care Insurance

Two factors that keep people from taking LTCi are a refusal to accept the possibility that they might really need it some day and the perception from the insurance as “costly. ” While you may indeed never need it, in case you live a long life, the odds are that you will. The cost of having it rather than using it is far less than that of needing it but not having it.

The objection most people raise in order to purchasing LTCi is the cost. It is perceived as “expensive, ” and perhaps it really is, especially if you wait until you are in your 70’s to try to get it.
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However , whenever tempted to procrastinate, ask yourself if you could afford a bill of about $4000 per month on what you have today. If you retire, are you likely to have more disposable money or less? Wouldn’t it be better to pay a premium averaging $900 to $2000 per year now rather than face the possibility of having to pay twice that each month if you need care? According to Medical News Today, “LTCi can be quite inexpensive, especially if you buy at a relatively early age. “