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Long-Term Care Insurance |
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Who
uses Long-Term Care services? |
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A
growing number of young people as well as
working-age
adults are becoming disabled as a result of accident
or illness. The overwhelming need for such care
however is still for people over age 65.
More than
12 million Americans need assistance with everyday
activities. Of these, approximately seven million
are elderly, five million are working age adults and
400,000 are children.
--GAO/HEHS
–95-109 Long-Term Care Issues
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Why
Buy Long-Term Care?* |
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To avoid depending on others for care; to
preserve independence and to enhance choice.
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To protect assets
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To protect Standard of Living
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To gain easy access, guaranteed affordable
services and greater flexibility in selecting
the type and location of the care they receive.
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To know there will not be a burden on their
family or friends for help.
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To preserve a chosen lifestyle
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To gain piece of mind
*Research
Alert Yearbook, 1998.
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How
much Long-Term Care Insurance do I need? |
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Long-Term Care includes a wide range of medical,
personal and supportive services. These services can
be provided at home, in an assisted care facility or
in a nursing home for an extended period of time.
There is no single plan that is right for
everyone. What may be right for you may not be right
for your next door neighbor. Each plan needs to be
tailored to fit your needs so that you will be able
to maintain your standard of living for as long as
you have planned.
Some things that you can look at to determine
your needs are:
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the cost of local nursing homes;
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how much can you afford to pay out of your
income;
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the amount of social security, investments and
other assets that you have available;
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how much can you afford to pay out-of-pocket,
should the need arise.
You should evaluate your needs based on your
finances to determine the correct plan for your
personal needs. The goal is to get enough coverage
so you don't have to deplete your assets if you need
care.
Source: "Kiplinger's Personal Finance Magazine", May
1997.
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Ten Reasons Why You Need Long-Term Care Insurance* |
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The government isn’t going to pay for
all of your long term health care needs.
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$100 per day = $36,500 per year. That’s
just room and board. In many states,
it’s really a half-day’s room and board.
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A Harvard University study showed 69% of
single people and 34% of married couples
would exhaust their assets after 13
weeks in a nursing home. 13 weeks = 91
days.
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At age 65, a woman has a two out of
three chance of spending time in a
nursing home. A man has a one out of
three chance. In the case of men,
mortality catches up with morbidity!
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Medicaid kicks in only after a person’s
assets and dignity are gone.
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Children would like to help, but
children often have children of their
own.
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Health rarely improves with age.
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You won’t be able to buy it when you
need to use it.
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Americans have access to the best health
care in the world, if they can pay for
it.
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If you want to choose where you go
instead of having to go where they take
you, you will need to have either a big
estate or adequate insurance coverage.
* Source: "A Shopper’s Guide to Long Term
Care", The National Association of Insurance
Commissioners
The Number One Reason For Buying Long Term
Care Insurance:
CHOICES.
When you
go into a facility, you have no idea how
long you will be confined. After several
weeks or months you begin to get a better
idea of the type of care that you need and
the services that your desire. You may not
like the facility or the services or the
staff or the food - that's normal.
Let's face it - no one
wants to be in a strange place, let alone a
nursing facility. With a policy in place,
you are not "locked in" to a situation. You
have the choice to move to any licensed
facility that you choose, for whatever
reason. Maybe the most convenient facility
or your first choice did not have a room
when you were admitted - you can move when
they have an opening.
The point is, you have
not made any long range financial
commitments to a facility when you let your
insurance pay them from month to month. This
also gives the facility an incentive to keep
you happy. As a private pay client, you are not
someone who is over a barrel with no choices
and there by default with no options. |
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Are
you too young to think about Long-Term Care? |
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In a recent study about long-term care, most of
the baby boomers (individuals born between 1946 and
1964) flunked a ten-question true or false quiz. 73%
incorrectly said Medicare is the primary funding
source for most older people’s long-term care costs.
Only 44% knew that most long-term care is provided
by family and friends. *
On average, two baby boomers turn 50 every 15
seconds. As this demographic of 75.8 million people
ages, more attention will be paid to the issues and
needs of the elderly, heightening the awareness of
long-term care. **
The multiple financial priorities of providing
for retirement, raising a family, the cost of higher
education, health care, etc.. will reinforce the
need for long-term care as families realize the
costs they face. Few people will be able to afford
to pay out-of-pocket for long-term care.
* National
Council on Aging/John Hancock Mutual Life Insurance
Company
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U.S. Department of Commerce, Bureau of Census
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Contact Us
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Although we believe
the above information to be correct, we do not give any tax or legal
advice. Please consult the appropriate legal or tax professional
for advice regarding your specific situation. |
