Insurance Insurance

Facing the Unbearable Cost of Care

In less than two decades, the cost of care in the country will increase fourfold and one's retirement savings of $500,000 will only be sufficient for a year's stay in a nursing home.  If past generations had the option not to purchase a long term care insurance (LTCI) policy, the baby boomers, Gen Xers and the Millennials are compelled to buy.    

Most people in the past lived to their 40s only, but there are some lucky ones who were able to make it to the line of 60s.  Folks today, especially women, live beyond 100 years and though that may sound as a good thing, experts in the healthcare industry say there's a downside to it. 

Living longer makes people susceptible to various geriatric diseases that would demand a great amount of care.  Without an LTCI policy or any kind of health care plan for that matter they won't be able to afford the cost of care which normally takes six months to 10 years.

At present, elderly folks who require assistance with the activities of daily living (ADL) such as eating, bathing, dressing, and transferring among others, pay a home health aide an average hourly rate of $19 or $36,480 annually.

Mind you, that given rate is not yet inclusive of homemaker services which cover household chores such as cooking, housecleaning, and laundry.  Should an elderly person receiving in-home care require this, too, he should pay additional $18 per hour which is tantamount to $34,560, the average annual rate for homemaker services.

Although senior citizens from age 65 and over make up a bigger percentage of the total population that is currently receiving long term care (LTC), there are adults as young as 18 who are currently in nursing homes due to physical disabilities resulting from accidents.   

According to the U.S. Department of Health and Human Services, 40% of the population that is currently receiving care comes from the 18 to 64 age bracket.  Aside from injuries which stemmed from accidents, multiple sclerosis, early-onset Alzheimer's disease, and stroke are other common reasons that a lot of people have acquired LTC too early in their lives. 

Planning with a Long Term Care Insurance     

People who have invested into LTCI policies have two objectives.  One of which is to receive topnotch care should an event trigger the need for it and secondly, they wanted a safety net for their assets as they intend to pass these on to their children.

Investing in an LTCI policy, however, requires so many factors such as age, health condition, choice of LTC setting, budget, and assets. 

Younger people have the privilege to secure an LTCI policy for a lower annual premium.  Healthier people who are less likely to end up in a nursing home are also going to enjoy affordable annual premiums since they can settle for a maximum benefit amount that conforms to the cost of in-home care and community-based care in their area. 

Insurance companies offer different types oflong term care insurance policies so take the time to study each meticulously. You can consult a licensed LTCI agent who represents major LTCI carriers to ensure that you get the ideal coverage.     

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