Importance of Long Term Care
Welcome to Long Term Care Information Services
We hope you find this site helpful
Walters & Associates Insurance Services, Inc.
is one of the largest insurance agencies in the state of Indiana specializing
in long term care. The information provided here is designed as a reference
source for individuals and associations who desire to know more about long
term care. With the risk of long term care being one of the principle concerns
for retirement planning, it may be wise to consider this form of insurance
protection.
PLEASE NOTE: This site is not intended for solicitation. Should you request additional information, only those materials approved for use in your state may be provided.
How will you pay for long term care?
A. Personal savings
Are your savings large enough to absorb the costs of long term care and still provide for your spouse or family's retirement and special needs?
B. Family
Is it reasonable to expect other family assets will be available?
C. Private insurance
A personal LTC insurance program may help to preserve family assets, retirement savings, and provide true protection. This type of insurance coverage has been acquired by millions of Americans.
Consider the advantages of a personal long term care insurance policy!
If you qualify for long term care insurance, there are several important advantages.
A. Independence
A personal insurance policy may allow greater choices in the facilities and services that are utilized.
B. Transfer the financial risk of long term care.
Financial risks will largely be transferred to the insurance company.
C. Protection of retirement savings and family assets.
Personal savings remain available for family and retirement needs.
What are your chances of needing long term care?
About 4 out of 10 persons age 65 and above will spend some time in a nursing home.
Many of these stays will be for relatively short periods, such as recovery from acute illness or surgery. Others will be for longer periods. The average of all stays is 2.5 years. The average nursing home stay for Alzheimer's patients exceeds 9 years.
In addition, there are about five times as many senior Americans receiving home health care services today as those receiving care in nursing homes.
Long term care costs
A year in a nursing home will cost from $30,000 to more than $100,000 depending on the area of the country it is in. Based on a average nursing home stay of 2.5 years, the total cost could be from $75,000 to $250,000. Home health care may also be very expensive, often with costs equal to those of a nursing home facility. Home health care costs an average of $50,000 per year for full-time live-in care.
Importantly, all costs are increasing due to inflation.
"The magnitude of LTC costs is startling. For all but very wealthy individuals…. LTC costs in the coming decades may far exceed available financial resources. The actual costs to an elder requiring LTC services for over 3 years are expected to range from $200,000 to over $1 million---much more than is generally recognized or planned for by those over 50 years old." Trusts & Estates, April 1996
How can these costs be paid? Personal wealth? Family assets? This is the main issue of LTC planning.
One basic purpose of insurance planning to is to transfer areas of financial risk that are considered too large for personal exposure. As an example, nearly everyone carries insurance on their homes for this reason.
Medicare and long term care
Unfortunately, the role of Medicare has often been misunderstood. Medicare pays for only a small fraction of LTC expenses. This has been a surprise to many people.
Long term care expenses are generally not paid for by Medicare. Medicare was designed to pay for acute care only, such as hospital and physicians' charges.
"It is important to remember that purely custodial care (the type of care most persons in a nursing home require) is not covered by Medicare or most Medigap policies."
Medicaid and long term care
In the U.S., we are fortunate to have government assistance programs that provide for LTC services for those individuals who are unable to pay their own expenses. However, to be eligible for Medicaid, the Federal-State public assistance program, individuals must spend down their own resources to minimal levels. Qualifications vary by state.
Understanding the need
The initial consideration is to recognize that a long term stay in a nursing home may be the greatest financial risk facing many people during their retirement years. No one chooses to be confined in a long-term care facility, but it should be noted that many such facilities are full, and some have waiting lists. The risk of needing LTC services is higher than many realize.
Consider these facts:
- People are living longer, and have more exposure to long term illness than ever before.
- In today's American family, it is very difficult for a younger family member to remain at home and learn the skills necessary to provide care for an older family member.
- According to the U.S. Department of Health and Human Services, people age 65 face a 40% risk of entering a nursing home at some point during the balance of their lifetime.
Indiana Partnership Policies Available
Walters
& Associates Insurance Services, Inc.
3278 N. Centerline Road
PO Box 331
Franklin, IN 46131
317.535.9390
800.535.9390
Fax: 317.535.0122
tom@waltersltc.com