The Importance Of Nursing Home Or Long Term Care Coverage
There are many reasons why LTCi or long term care is so crucial
. About 70% of those who live to age 65 will be in need of some care in a nursing home, or something similar in their lifetime. The average nursing home stay is 904 days. That is well over 2 years!. You can expect to pay close to $200,000 based on 2010 statistics. Can you write a check for this? 40% of us pay out of pocket. Half of all couples and about 7 of 10 single persons spend all their savings within one year of entering a long term care facility.There are only three ways to pay for assisted living or long term nursing facility care: Medicaid, your savings or other assets, or nursing home insurance coverage. For people with minimal assets, Medicaid pays this type of care. In most parts of the country 50% to 65% of nursing home residents are receiving assistance from Medicaid. In facilities where Medicaid is the primary source of funds you will find that they (which offers a very low reimbursement rate) generally offer a lower standard of care. More money means better care in most cases.
It should be noted that Medicare supplement does not pay for assisted living costs. Medicare supplement policies only pay for a limited amount of skilled nursing care after a qualified hospitalization. The most common type of care - custodial - is NOT covered at all! 75% of these expenses (as opposed to custodial nursing home expenses) are paid by the the person needing care.
Most people will find it difficult or impossible to fund an average stay in a "home," and still leave enough for a surviving spouse's living costs and possibly their need for long term care.
Few people are able to save enough money. Only the well-above-average families can afford the cost of even one parent requiring a typical stay in a nursing home, let alone two. Often one spouse becomes ill and needs to go to a facility providing custodial care. This can result in leaving the other spouse in poverty for the rest of their life.
Many now recognize the need for long term care insurance coverage for estate preservation for the longest period of time.
Yes, there are some people who will never use long term care insurance - about 30%. Even so, the average long-term care insurance policy purchased by a 65-year-old and held until death pays out 82 cents for every dollar of paid in premiums.
Long term care insurance plans are not standardized and there are such a wide variety of options available for coverage, it is may not be a good idea to research and purchase LTC without help. An experienced broker will understand which optional coverages each insured needs, and customize their advice to best fit each situation. A veteran nursing home insurance agent is the best resource to compare contracts, coverage, and endorsements. Your broker can help make sure the policy you buy is the appropriate plan.
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