Long-Term Care Insurance
A Few Facts for Seniors
What Is Long-Term Care Insurance?
Long-Term Care insurance is a contract that guarantees to pay for a sudden,
unexpected, large continuing expense that would seriously deplete or exhaust
your financial resources. It is not limited to nursing home care
for the elderly. Long-Term Care insurance policies are actually
designed to and may be the only thing that will keep us out of a nursing
home when we need care for an extended period of time. When we are
unable to take care of ourselves, we need to hire someone to do it!
Long-Term Care insurance should be a consideration whether you are 30 or 75 years of age. Accident or illness can happen at any age, at any time.
The Medicare Misconception
Many people think Medicare covers Long-Term Care expenses, such as nursing
home and home health services. Medicare only provides short-term
benefits (a maximum of 100 days) for skilled care in a nursing home, following
a three day hospital stay. Medicare pays only for part-time skilled
home health visits and nothing for 8 hour shifts at home. Most Long-Term
Care is custodial and not skilled care. Don't count on Medicare
to pay for your Long-Term Care. It won't!
Patient power comes from the ability to pay privately. (Long-Term Care Insurance)
Why Do I Need Long-Term Care Insurance?
Chances are greater than 7 out of 10 that you will need Long-Term Care
at some time in your life. What if you have an accident or a stroke and
it doesn't kill you? The average cost of Long-Term Care in Michigan
today is $267 for a private room and $202 for a semi-private room, and
the average stay is 2.7 years. That equates to an average of $73,777
per year in 2004 or a total of $200,000, and the cost increases at 5%
per year. Long-Term Care can last for several months or years. The
chance that you will need Long-Term Care is greater than that of the loss
of home or auto. Think in terms of your total portfolio and what
portion of it has been allocated to fund post retirement lifestyle. Long-Term
Care insurance WILL reduce or eliminate the invasion of principal if you
become chronically ill.
Waiting Can Be A Costly Mistake
Not everyone qualifies for Long-Term care insurance. A change in
your health can result in higher premiums by as much as 50% for the same
protection prior to your health problem. It's possible that a change
in your health could make you completely ineligible at any price. If
you buy a policy at age 65, the premium can be more than double than if
you had bought the policy at age 55.
"OWN YOUR FUTURE" - IT'S WISE TO PLAN AHEAD