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 Think
Long Term When Considering Future Care
In 2000, almost half of
the $123 billion spent on U.S. long-term care for those aged 65 and older was
paid out of pocket by individuals. Only 3 percent was paid by private insurance,
while the rest of the tab was picked up by federal and state health programs.¹
With out-of-pocket expenses so
high – and the national average nursing-home cost reaching $55,000 per
year – individuals may want to consider purchasing long-term-care
insurance to help pay for some of these potential expenses, as well as to help protect their hard-earned assets.²
 A
long-term-care insurance policy can help policy owners who need assistance with
daily living activities to pay for custodial care, which typically isn't covered
by health insurance or Medicare. Nursing-home and home-care expenses are primary
examples of the costs that are covered by these policies.
Because affordability is a key
concern, it's generally recommended that long-term-care insurance be considered
by those who: (1) are able to pay the premiums without negatively altering their
lifestyle; (2) can absorb potential increases in premiums; (3) will have annual
retirement incomes of at least $25,000 ($35,000 for couples); and (4) own assets
of at least $75,000, excluding homes and automobiles.³
Before purchasing a policy, an
individual should consider the insurance company's financial strength, the daily
benefits offered, the length of benefits, the inflation provisions, the claims
process, and the stability of premiums.
As health-care expenses continue
to rise, purchasing a long-term-care insurance policy may be an important
safeguard to help protect assets and fund future long-term-care costs. Call
today and we can help you make an informed decision.
1) The National Council on the
Aging, 2004
2) Insure.com, 2003
3) United Seniors Health Council, 2004
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