Long-term Care Insurance: Security for Americans

Health Care Crisis in America

A health care crisis is looming on the horizon for many People in america, one that could bring financial plus emotional devastation that would make cruising gas prices and bouncing stock markets pale in comparison.

The problem? Based on Metlife, 70% of people over the age of sixty-five will need some form of extended care before they die, whether it’s a visiting nurse in the home or full-time nursing home care. According to The Alliance to get Aging, “nearly 9 out of 10 Americans will have at least one chronic condition” by age 65. Thanks to contemporary medicine, these conditions are debilitating, but not immediately fatal. Most senior citizens express concern about paying for necessary care in the face of such a condition, but few do anything about it.

Laura Moore, senior vice president regarding long term care insurance at Ruben Hancock, says the issue is “increasingly important because Americans are living longer, treatment costs are rising, and business pensions are being cut back. ” Moore says that Americans are “not facing the reality of what lies ahead. ”

If you need extended treatment, but are unable to pay for it, the burden can fall to your families. The psychological, physical, and financial drain associated with caring for a sick parent is so traumatic that, according to the American Alzheimer’s Foundation, 60% of family treatment givers die before the person they may be caring for! Furthermore, if you are placed in the nursing home without the funds to pay the bill, you risk not only your life long savings, but also the family home and even your life insurance.

Knowing Long Term Care

Long term or extended care refers to care that is required beyond the time period covered by Medicare or major medical insurance. It is often provided in the nursing home, but can also be offered in a person’s home or within an assisted living facility.

The cost of assisted living, nursing home care and professional home health care is high and climbing yearly. A the year 2003 study conducted by Metropolitan Life Insurance found the average rate to be $180 per day or $66, 000 each year for a private room in a medical home. Care in an assisted living facility averages $30, 288 a year while professional home care would cost $166, 440 a year to get round the clock care at $19. 00 per hour. Due to inflation, by 2021, nursing homes may cost as much as $175, 000 per year.

There are three strategies to surviving these high costs associated with extended care. You can be rich enough to pay all costs yourself, participate in a spend down to exhaust your own assets and qualify for Medicaid, or you can purchase Long Term Care insurance (LTCi).

Long Term Care Insurance

LTCi is definitely an insurance program that pays for prolonged care when Medicare and personal major medical is exhausted, or even for intermediate or custodial care which are not covered by Medicare or even major medical at all. The most comprehensive programs cover home care, aided living, and nursing homes. Simpler programs provide home care only and are also less expensive.

The care usually consists of assistance with daily activities such as eating, dressing up, walking, bathing, moving from bed to chair (called transferring) and using the toilet, or, in the case of cognitive disability, simply sitting with a person to avoid him from danger to himself.

Regardless of the type of plan preferred, it can like any other kind of insurance. You are unable to purchase it once you actually need the particular care.

Making the Decision for Long Term Treatment Insurance

Two factors that keep people from taking LTCi are a refusal to accept the possibility that they might really need it some day and the perception from the insurance as “costly. ” While you may indeed never need it, in case you live a long life, the odds are that you will.
If you have any kind of inquiries pertaining to where and how to make use of Versicherungsmakler Kassel, you could contact us at our own website.
The cost of having it and not using it is far less than that of needing it but not having it.

The objection most people raise in order to purchasing LTCi is the cost. It is perceived as “expensive, ” and perhaps it really is, especially if you wait until you are in your own 70’s to try to get it. However , whenever tempted to procrastinate, ask yourself in case you could afford a bill of about $4000 per month on what you have today. Once you retire, are you likely to have more disposable money or less? Wouldn’t it be better to pay a premium averaging $900 to $2000 per year now instead of face the possibility of having to pay twice that each month if you need care? According to Healthcare News Today, “LTCi can be quite inexpensive, especially if you buy at a relatively young age. “

Leave a Reply

Your email address will not be published. Required fields are marked *