Long-term care insurance is an important part of your financial plan. If you develop a chronic illness or become disabled and can no longer care for yourself for an extended period of time the cost of long-term care can quickly deplete your life’s savings. Your friends and family will be forced into the role of care-giver whether or not they are capable or want to assume caring for you. In order to get government help paying for the long-term care you must bankrupt yourself and medicaid will put you in the facility of their choosing. IS THIS WHAT YOU WANT?
A study by the US Department of Health and Human Services indicates that people age 65 face at least a 40% lifetime risk of entering a nursing home during their life. About 10% will stay there 5 years or longer
- The average nursing home stay is 3.1 years
- Of those who live to age 65, 7 in 10 will need some long-term care services at some point in their lives Who Cares: Kiplinger’s No- Nonsense Look at LTC and How to Pay for It
- 39% incorrectly assume that Medicare is the primary funding source for LTC – Congressional Budget Office
- 43% did not know that eligibility for Medicaid required spending down assets to state-prescribed levels – US Dept of Health and Human Services
- 30% incorrectly answered that the average 1 year stay in a nursing home is $30,000 when it is actually more than twice that, at $71,000 – John Hancock 2005 Cost of Care Survey. Costs for 2015 in the state of Ohio averaged $84,000
Private Long-term Care policies are a more attractive option to many
- Enables customers to go to any facility
- Covers a broader array of services
- Provides coverage for an extended period of time
Value of Long-term Care insurance
- Delivers financial support
- Protects retirement savings
- Provides control over where people receive care, whether that is at home or in a nursing facility
- Provides the means to pay for a higher quality of care
- Relieves family and friends from care-giving responsibilities
- Offers professional advice. Resources, and discounts