Plan for Long Term Care
The High Cost of Long-Term Care
About half of all senior citizens will need about two years’ worth of intensive personal care before they die, which will cost an average of $140,000. For 15% of these people the cost will top $250,000.
Long-term care is very expensive. According to a John Hancock national study of long-term care costs, in 2013, the average annual cost of care in the U.S. was $94,170 for a private room in a nursing home ($82,855 for a semi-private room); $41,124 for an assisted living facility and $18,460 for adult day care. The average annual cost of care received at home was approximately $29,640.
In an EBRI study, during the two-year period examined, households with a member aged 85 or above spent an average of $24,185 out-of-pocket for long-term care expenses. But the households in the top 10 percent of nursing-home spending spent more than $66,600.
Long-term care costs are probably most concerning for middle-income households. High-income households may be able to self-insure and low- income households may not have enough assets to protect, so Medicaid will likely cover their expenses.
According to EBRI’s Retirement Security Projection Model predictions, 89 percent of households in the second-income quartile will not run short of money in retirement if these unpredictable health care costs are ignored. However, if these costs are included, only 42% of households in that income group won’t run short of money, based on projections.
Check out Long-Term Care Quote www.ltcq.net an independent agency specializing in long-term care insurance. Long-Term Care Quote will find the best long-term care policy and premiums for you or your family from a choice of top-rated insurance companies. There is no cost or obligation to use this service..
Make sure the insurer is a stable, reliable insurance company. Rating services can help you do this, likeCheck the benefit amount the insurance will pay you. $100, $150 $200 per day. The amount of the benefit and the time that elapses between when you are medically certified to need it, your age at the time you purchase the insurance and when the benefit actually begins have a great deal to do with determining the amount of your premium.
Check to see if there a maximum dollar amount the insurance will pay out and how long will you be covered? The length of coverage also determines the cost of the insurance.
Check to see if there a difference between being admitted to a nursing home and staying at home with a registered caregiver?
Check to see who determines if you are able to receive benefits? Your physician? The insurance company?
You can see the many reasons why you should purchase Long-Term Care Insurance in these 10 Key Considerations guidelines from MetLife.
Check the MetLife Market Survey of Nursing Home and Home Care costs
Go to For Producers link and check under cost by state calculator.
Click on Learn About Long Term Care Options for long term care information.
Long-term care is very expensive. According to a John Hancock national study of long-term care costs, in 2013, the average annual cost of care in the U.S. was $94,170 for a private room in a nursing home ($82,855 for a semi-private room); $41,124 for an assisted living facility and $18,460 for adult day care. The average annual cost of care received at home was approximately $29,640.
In an EBRI study, during the two-year period examined, households with a member aged 85 or above spent an average of $24,185 out-of-pocket for long-term care expenses. But the households in the top 10 percent of nursing-home spending spent more than $66,600.
Long-term care costs are probably most concerning for middle-income households. High-income households may be able to self-insure and low- income households may not have enough assets to protect, so Medicaid will likely cover their expenses.
According to EBRI’s Retirement Security Projection Model predictions, 89 percent of households in the second-income quartile will not run short of money in retirement if these unpredictable health care costs are ignored. However, if these costs are included, only 42% of households in that income group won’t run short of money, based on projections.
Check out Long-Term Care Quote www.ltcq.net an independent agency specializing in long-term care insurance. Long-Term Care Quote will find the best long-term care policy and premiums for you or your family from a choice of top-rated insurance companies. There is no cost or obligation to use this service..
Make sure the insurer is a stable, reliable insurance company. Rating services can help you do this, likeCheck the benefit amount the insurance will pay you. $100, $150 $200 per day. The amount of the benefit and the time that elapses between when you are medically certified to need it, your age at the time you purchase the insurance and when the benefit actually begins have a great deal to do with determining the amount of your premium.
Check to see if there a maximum dollar amount the insurance will pay out and how long will you be covered? The length of coverage also determines the cost of the insurance.
Check to see if there a difference between being admitted to a nursing home and staying at home with a registered caregiver?
Check to see who determines if you are able to receive benefits? Your physician? The insurance company?
You can see the many reasons why you should purchase Long-Term Care Insurance in these 10 Key Considerations guidelines from MetLife.
Check the MetLife Market Survey of Nursing Home and Home Care costs
Go to For Producers link and check under cost by state calculator.
Click on Learn About Long Term Care Options for long term care information.
Costs vary depending on
- age at purchase
- daily benefit
- duration of benefit
- when benefits kick in
Can a family member be paid as a caregiver?
Yes if a written contract/agreement outlining the complete duties and responsibilities including schedules (must include time off) and payment amounts. This contract must be signed and dated.
A family caregiver is usually paid as a self-employed worker via a 1099 and should declare all the income and depending on the amount, pay estimated quarterly taxes.
If there is a long-term care insurance policy in force which covers home care, caregiver costs may be used. Check with your insurance agent and review the policy.
A family caregiver is usually paid as a self-employed worker via a 1099 and should declare all the income and depending on the amount, pay estimated quarterly taxes.
If there is a long-term care insurance policy in force which covers home care, caregiver costs may be used. Check with your insurance agent and review the policy.
What if I never need long-term care?
That's one of the biggest buyer objections to purchasing long-term care insurance. It's an understandable concern because this insurance is costly. Consider purchasing a life insurance policy that incorporates a long term care benefit. If you don't need it, your heirs collect on the life insurance policy, and your rates can be locked in. These "hybrid" policies are getting traction in the market, Look at these hybrid life insurance long term capabilities.
Major players that provide long term care insurance include: John Hancock, MetLife, Prudential, MassMutual, New York Life
Assisted living communities are designed for seniors who are having difficulty managing on their own, but who can provide a basic level of personal care including eating, taking their medication and bathing without assistance.
Continuing care communities usually have facilities for seniors in various stages of the aging process. Many of these communities include independent housing, assisted living facilities and nursing homes as well as rehabilitation care/facilities.
Home Health Care and Long Term Care Insurance can pay for nursing home or health-aids at home. The costs of these policies have risen substantially in the past few years. Check out several insurance companies prior to purchasing this kind of insurance and make sure to see if these carriers have raised their rates for existing customers over the past few years.
The cost of the insurance depends on several factors.
Stand Alone Home Health Care policies are generally much less expensive than Nursing Home/Home Health Care Policies. They are designed to pay for care at home, not in a nursing home. There are two advantages.
Assisted living communities are designed for seniors who are having difficulty managing on their own, but who can provide a basic level of personal care including eating, taking their medication and bathing without assistance.
Continuing care communities usually have facilities for seniors in various stages of the aging process. Many of these communities include independent housing, assisted living facilities and nursing homes as well as rehabilitation care/facilities.
Home Health Care and Long Term Care Insurance can pay for nursing home or health-aids at home. The costs of these policies have risen substantially in the past few years. Check out several insurance companies prior to purchasing this kind of insurance and make sure to see if these carriers have raised their rates for existing customers over the past few years.
The cost of the insurance depends on several factors.
- What is the maximum daily benefit? $100, $150, $200?
- How long will this benefit be paid 1 year, 2 years 5 years?
- How long after you are judged in need of nursing home or home health care benefits before the daily benefits kicks in. 30 days, 60 days 90 days? It may take 30 to 90 days before receiving the first benefit payment after submitting a claim. Take this into consideration when choosing an "elimination period".
- Is the coverage the same if you stay at home as opposed to being admitted to a nursing home?
- You can also consider depositing a single sum or making deposits over ten years into a special type of annuity that will pay out a percentage of the total value for your care either at home or a nursing home. If the entire fund is not used during your lifetime the balance of the benefits will go to your heirs. Of course it is also important to understand the parameters of what constitutes your need for these benefits and who makes this determination. Your physician? The insurance company? An insurance company approved retirement provider or caregiver?
Stand Alone Home Health Care policies are generally much less expensive than Nursing Home/Home Health Care Policies. They are designed to pay for care at home, not in a nursing home. There are two advantages.
- The patient can be kept in his/her own comfortable surroundings.
- The cost of the protection is a great deal less.
Long Term Care Insurance Costs
If you are interested in checking the cost of various long term care policies go to the Federal Long Term Care Insurance Program: Here you can enter your age, the daily benefit amount you wish to receive, the length of time you will continue to receive benefits and the waiting time before the benefits will start and your premium will be shown.
For example if you are 60 years old and want insurance that will pay you $200 a day for up to 5 years with a waiting period of 90 days before payments start, the cost is estimated at $243.64 per month with a maximum total lifetime payment of $365,000. This quote includes a 4% inflation option.
For example if you are 60 years old and want insurance that will pay you $200 a day for up to 5 years with a waiting period of 90 days before payments start, the cost is estimated at $243.64 per month with a maximum total lifetime payment of $365,000. This quote includes a 4% inflation option.
Top five myths and misconceptions of family care giving
From Market Watch and a study sponsored by Genworth Financial
Americans underestimate the impact that a family member’s long-term care needs could have on their own lives, marriages, work commitments, financial stability and future financial security, according to a new study sponsored by Genworth Financial and released by Age Wave and Harris Interactive. Some 66 million Americans – or roughly 20% of the U.S. population -are serving as unpaid family caregivers. According to the research, the actual impact of care giving on this group is often significantly greater than expected. Consider the following five care giving myths and misconceptions:
Disclaimer
The information on this page is provided to assist the reader in making decisions, but should not be substituted for the advice of health care advisers, attorneys or professionals with expertise in these areas.
For more detailed information on long term care click here
Americans underestimate the impact that a family member’s long-term care needs could have on their own lives, marriages, work commitments, financial stability and future financial security, according to a new study sponsored by Genworth Financial and released by Age Wave and Harris Interactive. Some 66 million Americans – or roughly 20% of the U.S. population -are serving as unpaid family caregivers. According to the research, the actual impact of care giving on this group is often significantly greater than expected. Consider the following five care giving myths and misconceptions:
- Financial contributions: While only 40% of caregivers expect they will contribute financially to the care of a family member, the reality is that 83 % actually do.|
- Income hit: In actuality, 63 % of caregivers experience a reduction in income. This compares to 38 % of caregivers that expect to experience such a reduction.
- Reduction in savings:37 % of caregivers expect their savings to decline as a result of their caregiving responsibilities. The study found that, in fact, 61 % of caregivers have used some of their savings to care for a loved one.
- Retirement funds tapped: Of caregivers surveyed, 57 % actually tapped their retirement funds to care for a loved one, compared to 34 % that expected to do so.
- Career impact: Nearly half (48 %) of caregivers lost a job, changed shifts or missed out on career opportunities as a result of their caregiving responsibilities, compared to 29 % that expected such impact.
Disclaimer
The information on this page is provided to assist the reader in making decisions, but should not be substituted for the advice of health care advisers, attorneys or professionals with expertise in these areas.
For more detailed information on long term care click here