According to LTC Almanac; Part I, 77% of consumers aged 30 – 65 think they should know more about long-term care insurance than they currently do. I’m not sure if the other 23% are already armed with enough information – or if they just don’t realize the complexities that need to be navigated when thinking of future care. Either way – if you want to know more you are in good company – here are the most common questions my clients ask:
Q. How much long-term care coverage will I need?
A. Start with factoring that the average annual stay in a nursing home is nearly $96,000, and the average length of stay is about two years – then add to that time you may need in an assisted living facility – or in your own home. While everyone’s needs are different, understanding your own health and having a clear vision of where and how you want to spend your later years can help you be sure you are fully protecting yourself and your family.
Q. When should I start a policy?
A. This is an individual decision, based on many factors. Most people think about LTC insurance when they are close to retiring. Premiums are much lower for people in their 40s and 50s than for those over age 65. In addition, as people age, they are more likely to develop health conditions that may make them uninsurable. After age 60, premiums for LTC insurance begin to rise steeply.
Q. Why should I get long-term care insurance?
A. Most health insurance plans provide for in-hospital care, doctor visits and preventative healthcare needs. But, they may not cover many other health-related needs of older adults. Long term care costs, whether in your home, at assisted living or elsewhere are not covered by any health insurance plan, not even Medicaid.
Q. If I buy long-term care insurance will I be able to stay out of a nursing home?
A. Not necessarily – This is all dependent on the level of care you need. However, just over half of long-term care claims are for in-home care, with 30% in nursing homes and just under 20% of claims are for assisted living care. With the financial boost of long term care benefits, you are more likely to be able to better afford the costs involved in being at home.
Someone you love will pay for your long term care. Like it or not, women usually step up in families to do what’s needed. A wife, daughter or daughter-in-law will likely bear the major burden and make the sacrifices necessary to take care of you at a physical cost, or at the cost of employment/advancement. Your retirement funds and savings, designed to pay for your joint life time retirement, will likely become depleted,. So your survivor – wife or husband, will do without, because other than insurance, there is no way to provide for what you will likely need.
Knowing more is important. Get the information you need – not only for your parents’ care, but for yours as well. November is Long-Term Care Month – now is the time to arm yourself with knowledge.
