Long Term Care
The Aging Face Of America
As we approach another year, a national
crisis is being played out in the homes of average families all across
America. You are contributing to the crisis if you watch your
cholesterol, take vitamins, exercise and see your doctor regularly,
because you are increasing the odds that you will live longer. In
America, seniors will represent the largest demographic group in the
country. Life expectancy has increased to nearly 85 years old and the
longer we live the more we become susceptible to frailties and
illnesses that increase the possible need for long term care.
The Need For Care
Most Americans usually have two major misconceptions
about long term care. The first thought, "It will never happen to me",
borders on wishful. According to a study published in The New England
Journal of Medicine, a staggering 43 percent will enter a nursing home
at some time before they die. Of these, 55 percent will stay at least a
year and 21 percent will stay at least five years, with the average
stay lasting two and a half years. Plus, many more will need care at
home.
The second misconception is that if care is needed,
government programs will protect them from financial devastation.
Unfortunately, the average cost of a year in a nursing home,
nationwide, is about $95,000. Although
Medicare serves the acute needs of older Americans, it was not
intended to cover chronic long term needs.
Long term care is a leading cause of catastrophic out-of-pocket health care costs for the elderly.
The
Solution: Long Term Care Insurance Another method of paying for long
term care, that you or a family member may need, is the purchase of
private long term care insurance. Long term care insurance pays a
certain dollar amount per day for a set number of months or years of
skilled, intermediate or custodial care. It will pay for the service
and support required for day-to-day living when frailty, prolonged
illness or disability prevents you from caring for yourself. Depending
on the policy you purchase, care can be provided not only in a nursing
or assisted living facility, but in your own home or in an adult day
care center.
Under age 65, your risk of disability is greater than your risk of death.
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The policies
are age related and health underwritten. So, the earlier one purchases a
policy, the lower the premiums. Many persons assume that only senior
adults may need long term care because they can no longer perform
everyday activities on their own such as bathing or dressing. But the
fact is that anyone at any age may suddenly require long term care
services. Surprisingly, almost 40% of those receiving long term care
are under 65 due to accidents, mental conditions, AIDS, Multiple
Sclerosis, Muscular Dystrophy, etc.
The decision to purchase a
long term care insurance policy and the type of policy selected depends
on many factors. For example, significant differences exist among
policy features, benefit options and eligibility criteria. Choosing
among these options can present you with a significant challenge and
requires your careful consideration of a number of factors related to
long term care risks and your individual needs.
Considering your
own families' health history can be a starting point. If your
relatives are long-lived, there's a good chance that you may have a
greater life expectancy and will someday need assistance. Another
concern would be if your family has a history of stroke, Alzheimer's or
Parkinson's disease, ailments that typically require long term care.
Policy
Choices and Benefit Options The importance of looking for a flexible
plan that allows you to design a policy that not only addresses your
budget, but also assists you in maintaining maximum independence when
care is needed, cannot be emphasized enough.
COMPREHENSIVE LONG TERM CARE: These
policies pay for long term care provided at home or in the community as
well as nursing facility care.
Choosing Your Daily Benefit Amount
Insurance
companies offer policyholders a choice of daily benefits, usually $50
to $500 a day for care. Before deciding on a daily benefit amount, you
should consider how much nursing facilities in your area charge. If
home care is covered as part of your policy, the benefit for those
services should be at least one-half of that for nursing facility care.
Choosing Your Deductible Period
With
all long term care policies, you'll need to choose a specific
deductible period or elimination period. This is the number of days you
must pay out-of-pocket for either nursing home or home health care
before your insurance policy takes over paying the daily benefit you
have chosen. These deductibles typically range from zero day deductible
up to a 365-day deductible. Since longer deductibles lower insurance
premiums, you'll need to weigh the savings to determine what is best
for you.
Choosing Your Benefit Period
Another choice you will
be asked to make is the length of time your benefits will last.
Benefit periods may run for one year, two years, three years, four
years, five years and lifetime. many nursing facility stays can be as
short as three months or as long as several years. Keep in mind, that,
even if you are able to leave the nursing home, you may still require
home care services.
Call 1-800-764-6585 to explore your options now, or fill out the form below to be sent an enrollment kit.
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