Long Term Care (LTC)
If you can afford long-term care insurance, you should probably consider it. Why? Because the cost of long-term care, should you need it, can quickly deplete your life's savings. For instance, having a home health aide visit just three days a week can cost more than $20,000 annually. Full-time nursing home care, the most expensive type of care, can average more than $60,000 per year. In some regions of the country, like the Northeast, the cost may be twice that amount.
But what are the odds that you'll need these kinds of services? Greater than you might imagine. There's about a 50 percent chance you'll need some type of long-term care after age 65. And long-term care services are not just for older people. A young or middle-aged person who has been in an accident or suffered a debilitating illness may very well require long-term care services. In fact, 40 percent of patients receiving long-term care are under age 65.
Myth
I don't need long-term care insurance because the government will pay for my care should I ever need it.
Reality
Medicaid, the government's long-term care program for low-income Americans, only kicks in after your own assets are significantly depleted and there's little left over for your spouse or family. Relying on Medicaid may also make it harder to find the type of care or facility that's most convenient for you.
Testimonials
Lynda Striepe
Allen Striepe was a respected school teacher until Alzheimer's disease made him too sick to work. Long-term care insurance allowed his wife Lynda to hire a home health aide, so she could continue her teaching career. Five months later, Lynda could no longer care for him on her own and Allen's insurance covered his stay in an assisted living facility and later in a nursing home. Though Allen died two years after his initial diagnosis, Lynda credits the insurance for getting her husband the care he deserved and preserving her retirement assets.
Watch the Testimonial Video
Margaret Sweborg
Margaret Sweborg was always a very active and independent-minded person. Wanting to maintain her independence even if her health were to deteriorate one day, Margaret purchased long-term care insurance at age 66. That day arrived 13 years later when Margaret broke her hip and nearly died as she lay on the floor of her home for days, unable to call for help. No longer able to manage her own physical or financial affairs, Margaret relied on her step-granddaughter, Rindy, to take over. Rindy worked with Margaret's agent to file the long-term care insurance claim. The money from that policy, coupled with some retirement savings, enabled Margaret to move to a first-rate nursing home. Without it, she probably would have spent down all her assets and sought inferior, Medicaid-funded care.
Watch the Testimonial Video
More Information
Your Guide to Long Term Care Insurance by the Insurance Marketplace Standards Association, www.IMSAethics.org
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