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Long Term Care
In securing one's financial future, family and yourself, your greatest financial risk today and for the foreseeable future is the very high cost of long term care.
Studies have shown that 43% of those who turned age 65 in 1990 will enter a nursing home at some time during their life. Of those who live to age 65, nearly 1 in 3 will
spend three months or more in a nursing home and 1 in 4 will spend one year or more in a nursing home. Only 1 in 11 will spend five years or more in a nursing home.
Women outnumber men in nursing homes according to studies. Thirteen percent of women as compared to four percent of men were projected to spend five or more years in a nursing home. And obviously the risk of
needing nursing home care increases with age.
What about Medicaid and Medicare? Won't they cover my expenses?
Unfortunately, you probably can't rely completely on government programs like Medicaid and Medicare for help. These programs can be hard to qualify for and they only provide limited coverage for long term
care costs. For example, Medicare only pays for up to 100 days of nursing home care - and you have to be hospitalized before you can qualify for the benefits. Healthcare plans and Medicare pay only about
three percent of long term care. The rest comes out of funds earmarked for retirement, life savings or from long term care insurance. The best protection against the escalating cost of long term care is your
plan for the future.
Could I make it on my savings?
For most people, the answer is no. Even if you have an emergency fund, today's medical costs and your
living expenses can quickly exhaust your savings. What's more important, you may need your savings to pay your other day-to-day expenses.
Who Should Consider Long Term Care Insurance?
If you are over age 50 and have assets to protect, but you are not wealthy enough to comfortably pay for long term care out of your savings, you should be considering long term care insurance now. Remember
it is always best to apply now while you are healthy. If you wait until your health requires it, no company will insure you.
Top ten reasons why people should consider Long Term Care Insurance:
10. The government isn't going to pay for long term care at home, in a nursing home, or in an assisted
living center. Medicare pays 100% of long-term care for 20 days and all but $95.00 per day for the next 80 days--after that nothing. However Medicare only pays for skilled care and most long term care is not
skilled care.
9. The national average cost for nursing homes is approximately $105.00 per day. Assisted living costs
ranges anywhere from $50 - $90 per day. If you live on the Eastern Seaboard you can easily spend $50,000 to $80,000 for a year's stay in a nursing home. These costs are perfectly capable of wiping out a
lifetime of savings-not to mention the emotional effect long term care has on a family.
8. A Harvard University study showed that 69% of single people and 34% of married couples would
exhaust their assets after 13 weeks in a nursing home. 13 Weeks = 91 days!
7. At age 65, a woman has a one out of two chance of spending some time in a nursing home. A man has
a one out of three chance. In the case of men, mortality catches up with morbidity.
6. Medicaid kicks in only after a person's assets and dignity are gone. In many states the eligibility
threshold for single people is $1,500 in assets. After all Medicaid is  WELFARE.
5. Children would like to help, but children often have children of their
own. They certainly can't quit their jobs to care for their parents.
4. Health rarely improves with age.
3.
People can't buy long term care coverage at crisis time or when they are ready to use it.
2. American's have access to the best health care in the world, if they can pay for it.
1. Most People want to choose where they go instead of having to go where they are taken, and if independence is important to them, they will need to have either a big estate or adequate insurance.
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