Q.  Just how expensive is long term care?  Is my retirement secure?

 

As a national average, one year in a private room in a nursing home is bout $70,080.  In some areas, it can be twice that amount.  Assuming a 5% annual inflation, these numbers will increase over 250% in the next 20 years. Met Life Market Survey of Nursing Home and Home Care Costs, 2004

 

The national average hourly rate for a Home Health Care Aide to assist with

getting dressed, bathing, meal preparation, and similar household tasks is $18

per hour.  If skilled help such as a physical therapist is needed, the costs can be much higher. Met Life Market Survey of Nursing Home and Home Care Costs, 2004

 

In Indiana, the average cost of nursing home care for one year is over $44,000.  In-home care which includes three nursing visits per week is over $15,000

annually.  The cost of long term care has been rising 4% to 5% each year.  Consumer Price Index, U.S. Bureau of Labor Statistics, 1997-2000

 

Long term care insurance is an essential part of your retirement plans but

deciding on options when purchasing long term care insurance can be daunting.  Your agent can help you choose the perfect plan for your needs. 

 

It is your agent's job to research the growing number of insurers and the LTC products they offer.  This research saves you time and the hassle of shopping for long term care insurance by yourself.  Contact a professional to design a plan to help protect your assets and income.

 

Q.  Am I too young to be thinking about purchasing long term care insurance?

 

Many people who truly intend to purchase long term care insurance put it off

from year to year.  They wait until they're a little bit older before deciding to buy.  The decision to wait may be costly!  Like most insurance, premiums for LTC are based on how old you are when you apply - the older you are when you sign

your application, the higher your premiums will always be.

 

The need for long term care can come at any age, no matter what your health status.  40% of the 13 million Americans receiving long term care services are between the ages of 18 and 64 (prime working years).

 

Remember, the information you give on your application is based on your PAST HISTORY up to the time you apply for coverage.  If your health changes, or you have an accident...you could become uninsurable. An Employer's Guide to Long Term Care Insurance - Health Association of America, 2002.

 

The younger you are, the lower your premium!  It's always best to apply for long term care insurance while you are in good health.

 

Q.  Can I fit the cost of long term care insurance into my budget?

 

It's always easier to budget to set monthly amount than to be hit with large or unexpected expenses.  Health insurance is designed to protect you from

incurring excessive medical bills.  It protects you from having to reach deep into your pockets or depleting your hard-earned savings to pay the bills.  Most people choose not to gamble when it comes to having health insurance. 

 

The same path of reasoning is true for long term care.  If something happened to you and you needed to be cared for for a long period of time, the retirement savings or money you hoped to leave your children, might have to go to pay bills instead.