Long Term Care - The Largest Forgotten Financial Risk
In 2008 the stock market plummeted and dreams of retirement tumbled too.
Millions of Americans' to date have yet to gain back their losses.
Average losses for the S&P were 38.
5 % (1) and are nothing in comparison to what could happen when it comes to long term care.
Majority of Americans' have a false security when it comes to Medicare covering their long term care expense.
While others believe they can self-insure their own risk.
Medicaid scares most people and yet, few believe it could happen to them.
Retirement nest eggs take years to build and protecting them with long term care insurance makes sense when you understand what is at risk.
Many misconceptions surround Medicare, yet Medicare rarely covers long term care expenses.
To receive any benefits one must need skilled nursing care 24 hours a day and have a doctors' written statement.
Care must be immediately received following a hospital stay of 3 days minimum and in a Medicare -certified skilled nursing facility.
Majority of people never meet these criteria.
If one does receive benefits for long term care, each benefit paid pays 100% for first 20 days, and then the co-insurance requires the patient to pay $133.
50 per day from 21- 100 days (2).
After 100 days Medicare pays nothing, leaving ones' life savings at risk.
The average stay in a nursing home is 3 years.
Would your investments and savings hold up? Alzheimers' disease in 2008 was the top cause of claims and had an average claim period length of 659 days.
Personally, my grandmother had both Alzheimers' and Parkinsons' disease, and lived 10 years in a nursing home.
In 2007, 180,000 individuals received claim benefits totaling $3.
5 billion and 43% were from Home Care claims (3).
Home health care allows one the freedom to stay in their own home longer and chose their care.
By the time all baby boomers reach retirement age the long term care costs are expected to quadruple.
Could you cover the cost associated with long term care? What about in 5- 10 years? Self insuring only works for the extremely rich when you look at the cost associated with long term care and the cost of inflation.
Long term care cost can vary greatly from state to state, and city to city.
The 2008 average cost of care for a private nursing home in the St.
Louis area was $175 per day, assisted living Based on the 2008 cost for St.
Louis, the private nursing home could have been $63,875 or more annually and if you multiply out the 3 year average the cost could be $191,625 before inflation.
With 5% compound inflation the $63,875 annual cost could grow to $104,045 approximately in ten years.
How long would your assets last? After evaluating the cost of long term care, most find the long term care insurance premium affordable compared to the cost of self-insuring.
After years of planning for your retirement is the risk worth losing your nest egg and possibly having to qualify for Medicaid? Ask anyone if they want to be on Medicaid and majority of the time you will hear a firm "NO.
" Medicaid is the government funded program for low income people.
In order to qualify one will have to "spend down" their assets and meet the income guidelines.
In Missouri one must have less than $1000 of available resources ($2000 per couple) and an income at or below the 85% federal poverty level.
The individual 85% federal poverty level is $768 monthly, $1033 monthly per couple (5).
Until one meets these guidelines long term care expenses are paid for by ones self.
When one spouse needs care, the other spouse will also suffer by losing the lifestyle they have become accustom to.
Being qualified for Medicaid does not guarantee one will stay in the same nursing home where they have been receiving care, and sometimes finding a Medicaid bed available means moving away from ones' spouse and family.
Long term care insurance can help one remain independent longer, have freedom to choose where care is received and preserve asset for heirs.
Most people have heard of the horror stories associated with Medicaid funded nursing homes on the news or from acquaintances.
Today society is mobile and spread out, making it more difficult for families continue to care for the elderly as previous generations had.
The economy has forced most households to need two incomes to make ends meet.
If an elderly parent needed care, one spouse could have to give up a job.
By having long term care insurance many of the unseen complications could be avoided altogether.
Do not wait too long to learn more.
Long term care insurance is medically underwritten, and waiting could cause you a denial of coverage.
Remember the healthier and younger you are, the more affordable long term care insurance can be.
Most agents are willingly to help educate and provide you with honest comparisons for your situation with no obligation.
Make sure to ask all the questions you may have, after all you have nothing to loss and only your money to save.
Millions of Americans' to date have yet to gain back their losses.
Average losses for the S&P were 38.
5 % (1) and are nothing in comparison to what could happen when it comes to long term care.
Majority of Americans' have a false security when it comes to Medicare covering their long term care expense.
While others believe they can self-insure their own risk.
Medicaid scares most people and yet, few believe it could happen to them.
Retirement nest eggs take years to build and protecting them with long term care insurance makes sense when you understand what is at risk.
Many misconceptions surround Medicare, yet Medicare rarely covers long term care expenses.
To receive any benefits one must need skilled nursing care 24 hours a day and have a doctors' written statement.
Care must be immediately received following a hospital stay of 3 days minimum and in a Medicare -certified skilled nursing facility.
Majority of people never meet these criteria.
If one does receive benefits for long term care, each benefit paid pays 100% for first 20 days, and then the co-insurance requires the patient to pay $133.
50 per day from 21- 100 days (2).
After 100 days Medicare pays nothing, leaving ones' life savings at risk.
The average stay in a nursing home is 3 years.
Would your investments and savings hold up? Alzheimers' disease in 2008 was the top cause of claims and had an average claim period length of 659 days.
Personally, my grandmother had both Alzheimers' and Parkinsons' disease, and lived 10 years in a nursing home.
In 2007, 180,000 individuals received claim benefits totaling $3.
5 billion and 43% were from Home Care claims (3).
Home health care allows one the freedom to stay in their own home longer and chose their care.
By the time all baby boomers reach retirement age the long term care costs are expected to quadruple.
Could you cover the cost associated with long term care? What about in 5- 10 years? Self insuring only works for the extremely rich when you look at the cost associated with long term care and the cost of inflation.
Long term care cost can vary greatly from state to state, and city to city.
The 2008 average cost of care for a private nursing home in the St.
Louis area was $175 per day, assisted living Based on the 2008 cost for St.
Louis, the private nursing home could have been $63,875 or more annually and if you multiply out the 3 year average the cost could be $191,625 before inflation.
With 5% compound inflation the $63,875 annual cost could grow to $104,045 approximately in ten years.
How long would your assets last? After evaluating the cost of long term care, most find the long term care insurance premium affordable compared to the cost of self-insuring.
After years of planning for your retirement is the risk worth losing your nest egg and possibly having to qualify for Medicaid? Ask anyone if they want to be on Medicaid and majority of the time you will hear a firm "NO.
" Medicaid is the government funded program for low income people.
In order to qualify one will have to "spend down" their assets and meet the income guidelines.
In Missouri one must have less than $1000 of available resources ($2000 per couple) and an income at or below the 85% federal poverty level.
The individual 85% federal poverty level is $768 monthly, $1033 monthly per couple (5).
Until one meets these guidelines long term care expenses are paid for by ones self.
When one spouse needs care, the other spouse will also suffer by losing the lifestyle they have become accustom to.
Being qualified for Medicaid does not guarantee one will stay in the same nursing home where they have been receiving care, and sometimes finding a Medicaid bed available means moving away from ones' spouse and family.
Long term care insurance can help one remain independent longer, have freedom to choose where care is received and preserve asset for heirs.
Most people have heard of the horror stories associated with Medicaid funded nursing homes on the news or from acquaintances.
Today society is mobile and spread out, making it more difficult for families continue to care for the elderly as previous generations had.
The economy has forced most households to need two incomes to make ends meet.
If an elderly parent needed care, one spouse could have to give up a job.
By having long term care insurance many of the unseen complications could be avoided altogether.
Do not wait too long to learn more.
Long term care insurance is medically underwritten, and waiting could cause you a denial of coverage.
Remember the healthier and younger you are, the more affordable long term care insurance can be.
Most agents are willingly to help educate and provide you with honest comparisons for your situation with no obligation.
Make sure to ask all the questions you may have, after all you have nothing to loss and only your money to save.
Source...