Have you thought about who will care for you in your old age? In the movie Still Alice, she was going to need long-term care at age 51 because of early-onset Alzheimer's. And her children stepped in to help keep her at home.
When people require help with normal activities-of-daily living or supervision due to cognitive impairment, they need long-term care. This care can be delivered at home or in various facilities like adult day care centers, assisted living facilities, memory care units, and traditional nursing homes.
Writer Dee Lee says there are only 1.7 million nursing home beds (in 15,700) nursing homes). Seventy percent of the residents are relying on Medicaid to pay bills that average $80,000 a year (in 2019, the average is much higher).
Read more of her article by clicking here: https://boston.cbslocal.com/2017/07/06/insurance-basics-long-term-care-2/
Do You Know How Expensive Extended Care Is?
The cost of long-term care is very expensive. Most people don't receive care in a nursing home, and nursing home costs are the most costly.
According to the LTC NEWS cost of care calculator, the average price of a skilled nursing home nationally is about $106,000 a year. The cost of care can even be more expensive, depending on where you live.
Click here is access the calculator.
For example, Dee Lee works for CBS in Boston. The average cost of a nursing home in Boston is averaging $148,410 a year. That is $406.60 a day!
If your income from your pension and Social Security is about $45,000 a year, you will have a shortfall of $283.31 a day. Where will that money come from if it happened today?
If you are in your 40s or 50s what happens when this cost is even more decades from now?
How Does LTC Insurance Work?
Long-Term Care Insurance will pay you a monthly or daily benefit once you qualify for benefits. This trigger, which is normally your need for either "hands-on" or "stand-by" assistance with two of the six activities of daily living or you require supervision due to a cognitive impairment .
Policies will typically have a waiting period called an elimination period. This is the number of days that you must wait before the benefits start being paid out. Usually, policyholders select a 90 or 100 day wait period since that would be the maximum period-of-time health insurance/Medicareand supplements would pay for skilled long-term care.
You Design Your Plan
Long-Term Care Insurance is custom designed. You will select a daily benefit amount or a monthly benefit amount. You will also choose either a benefit period or an initial amount of money in your benefit account. Both benefits should grow with inflation, although you must select an inflation option when you apply for coverage.
Keep in mind; an option to buy more insurance is not really an inflation benefit. The best inflation option will automatically increase your benefits every year but not your premium.
There are many other parts of a policy and several types of Long-Term Care Insurance plans available. Be sure to discuss these options with an experienced Long-Term Care Insurance specialist who works with the major insurance companies.
Get accurate information from a qualified Long-Term Care Insurance specialist. There are not many of those in the country but LTC NEWS can help find one for you. Just click here.
The best time to obtain coverage is when you are in your 40s or 50s, but remember, you must have reasonably good health to get a policy. Every insurance company will have its own rules.
Give your family peace-of-mind by preparing now for the financial costs and burdens of aging.