Considering long term care is an essential part of retirement planning, however many people never even think about it. The fact of the matter is that many people will not be able to take care of themselves in retirement because of stroke, disease, Alzheimers, or other health issues.
Long term care insurance is a crucial part of retirement planning
Long term care is not covered by health insurance and only a tiny fraction is covered by medicare. But if you or a loved one has a problem that makes them unable to perform the activities of daily living, such as getting dressed, using the toilet, taking showers, making their own meals, cleaning their home, etc., you will need long term care services.
Why you should plan now for long term care by getting insurance:
- Long-term care costs are projected to triple in 20 years.
- The average cost in the US for a year in a nursing home is between $55,000 and $77,000
- Medicare only covers 12% of a stay up to 29 days in a nursing home
- Medicaid does not apply until you have spent down all your assets
- Baby boomers make up the biggest group of caregivers. At the same time they are dealing with their own child care, retirement and health issues. This means they likely do not have the time and energy they need to perform the tasks required.
- Being a caregiver is really difficult. The average length of time that caregiving is required is about 4.3 years. Care recipients are an average age of 75 years old. About 60% of caregivers are employed, which means they cannot be home during the day to look after their loved one who needs care. (Caregiving in the U.S., National Alliance for Caregiving and AARP, April, 2004)
- In 2010, over $11 million in daily benefits was paid for long term care. This is 53 percent more than 2007. (AALTCI)
- Alzheimer’s usually lasts between 5-20 years. The average is 8-12 years.
- 70% of Alzheimer’s disease patients receive home health care. According to the Alzheimer’s Association, 1 out of 5 women are at risk for the disease and 1 out of 10 men are.
- Many of the people who purchase long-term care insurance are doctors because they see the reality of aging every day.
- If you get a policy when you are younger, you are more likely to qualify and the premiums will be much lower.
To learn more about long-term care insurance, click here, or call us to speak to an expert at (800) 331-4700.
