< < Back - 1 Minute Guide To Long Term Care Insurance
What you must know about LTC Insurance in less than 60 seconds.
We know that there are only a few of us crazy actuaries out there that find insurance interesting. And absolutely nobody likes to think about Long Term Care. Put them together and we've noticed people sitting next to us on a plane will develop a sudden and intense interest in the emergency safety instructions after asking us what we do. So in the interest of making it quick and painless (and avoiding a stampede to the exits) here's what you absolutely must know in less than 60 seconds.
:60 Long Term Care can happen to you. As we get older, all of us need help and a stroke, Alzheimer's or even a bad fall can leave you debilitated and unable to care for yourself. I know you don't want to think about this, but stay with me, only 50 seconds left. If you are over 65, the chances of someday needing Long Term Care is 68%.
And Long Term Care isn't just something that can happen in some distant old age... 37% of those receiving Long Term Care are under 65.
:45 If you need long term care, you will probably have to pay for it out of your own savings. If you're legally impoverished, government programs like Medicaid may cover your nursing home care. Medicare and virtually all health insurance programs will only cover LTC for a short time (less than 100 days) and then, only in part. For everything else, the bill will come to you.
:30 That bill is going to be a doozy too. Long Term Care is expensive. The average cost of a nursing home is currently over $70,000 per year.
By 2030, it is estimated to rise to $190,600 per year. A quick note: If you live in New York City, you're living the future today.
The average cost of a home care aid has spiked to $32.50 per hour.
That adds up to thousands of dollars a month. Many people need round-the-clock care, a burden that friends and family usually can't bear, and let's face it, you probably don't want them to.
:15 Long Term Care insurance can be an affordable alternative to using your savings to pay for care. Nevertheless it's not right for everyone. People that already have severe health conditions may not qualify for coverage, and if you are retired, with less than $70,000 in savings, purchasing insurance is probably inappropriate.
:00 Ok. So this was a bit of a trick. Its really not that simple. Actually choosing a carrier that will get you the best rate and designing a Long Term Care plan that fits your needs can be more complicated. But hopefully this was enough to help you decide if you need to get more information.
