Insurance
Taking the Long View: Long-Term Care
According to the latest government statistics, the average American woman can expect to live to the age of 80; the average American man to the age of 75.
That is good news, of course, but it also raises the issue of long-term health care. By that we mean the cost of care for chronic, debilitating conditions that likely would require intensive treatment at home or in a nursing facility. Those costs can range as high as $75,000 a year.
The chances are that your regular medical insurance will not cover that. Medicare will - but only after your assets are completely wiped out and you essentially are impoverished.
Though the cost can be high, many people protect themselves with long-term care insurance. Before you purchase such a policy, much research is required. Here are a few tips to get you started:
- Determine if you really need this insurance. You may not, if your assets are significant and you have sufficient savings to cover these costs. Also determine if you can afford the policy without significantly diminishing your current assets and inhibiting your current lifestyle.
- Long term care insurance is often referred to as "asset protection." Although it has been around since the early days of Medicare, today's policies have evolved to cover a broad range of services including nursing home care, residence in assisted living facilities and adult day care. Premiums vary substantially from $100 to $1,000 per month.
- As your work through these issues, keep this in mind: At age 65, Americans face a 40 percent chance of requiring a nursing home stay during the rest of their lives. For about 10 percent of all Americans, that stay will last at least five years.
More information is available here, as is a form for requesting price estimates (be wary, though - the sales pitches can be intense):
www.longtermcareinsurance.org/i-investments.html
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