Long Term Care is becoming the most important type of care as the baby boomers near retirement. An American Association of Retired Persons National Nursing Home Study found that nearly 50 percent of all Americans who reach age 65 are projected to spend time in a skilled nursing facility. Long Term Care Insurance provides a daily benefit to cover nursing home care and just as important if not more important, home care. We like to call this insurance “Stay Out Of The Nursing Home Insurance”.
1. What is long - term care? Long - term care is the day-in, day-out assistance you need when you have a serious illness or disability that lasts for a period of time and you are not able to take care of yourself. Long term care refers to a wide range of services delivered in your own home, adult day care centers, assisted living facilities, continuing care communities and in nursing homes. The level of care may be skilled or intermediate, but most frequently is at a custodial or personal level of care. 95% of the people who reside in nursing homes are receiving custodial care. The need for custodial care may be the result of an injury, illness, chronic condition or the frailty of aging where a person requires assistance with activities of daily living (ADL) such as bathing, dressing, feeding, transferring, toileting, or continence.
2. What are the chances that you will need long - term care? 70% of people over age 65 will require long - term care at some point in their lives. At age 75 the probability is greater. The older you are, the greater the probability that some form of long - term care will be required. Of those entering nursing homes, half will stay less than three months, many of these requiring care as part of a convalescing process. The average stay of the other half entering nursing homes will be approximately 3 years.
3. How much does long - term care cost? The current cost of nurses aides or home health aides ranges from $10 to $27 per hour. Home health care can amount to over $29,000 per year or more. The cost of nursing homes average about $188 per day - that's an annual cost of $68,620. Downstate costs range from $80,000 - $100,000 per year.
4. What is the future cost of long - term care? Assuming a 5% inflation rate, the annual cost of a nursing home stay:
- in 10 years will amount to $110,076
- in 20 years will amount to $180,424
- in 30 years will amount to $293,892
In 30 years, assuming an inflation rate of 5%, the average cost of a 5 year nursing home stay will cost a total of $1,469,460.
5. Who pays for long - term care?
6. How Do You Qualify?
- Medicare, Medicare Supplements, conventional health policies 3%
- Catastrophic Care Policies 0%
- Medicaid and state programs 46%
- Your savings or Private Health Insurance 51%
Once you own a Long Term Care policy you can qualify by loosing the ability to perform 2 of the 6 Activities of Daily Living (Dressing, Bathing, Eating, Transferring, Toileting and Continence) without assistance. Also Cognitive Impairment by itself would trigger a claim.
To find out how you can build a policy that fits your exact needs, please call our office our or click on the Quick Quote Form and we will get a quote to you ASAP.