|
Long Term Care Misconceptions and Facts
There are many myths about long term care ("LTC"). It's easy to be fooled by them: LTC is a subject that no one really wants to examine, because
people are afraid of it. However, fear is most effectively cured with information.
Some of the most common LTC myths are listed below. Click on a myth to learn more ... or just scroll down the page.
"I'm Too Young"
"My Family Will Take Care of Me"
"Medicare and Medicaid Will Cover My Bills"
"I Can Save Enough on My Own"
"Long term care insurance is too expensive"
"I'm Too Young"
A lot of us think that only senior citizens need to worry about long term care, so we put off preparing for the possibility. The fact is that untimely
accidents or illnesses can strike at any age. While 60% of people who will need long term care are 65 or older, 40% are working age adults between the ages of 18 and 64.
People of any age can develop serious conditions that require assistance with routine daily activities for an extended period of time and such help
could be very costly. Long term care insurance can help cover the cost of this care and protect your assets.
"My Family Will Take Care of Me"
This might have been a reasonable assumption years ago, when grown children tended to settle near their parents and women stayed at home. In
today's society, children may live across the country or around the globe. And many women are active in the workforce, with less time to fulfill their traditional caregiver role.
"Medicare and Medicaid Will Cover My Bills"
Medicare is generally available for those who are disabled and for people
over age 65 and only pays limited amounts for skilled care following a hospital stay. Medicaid is the government program to help those in financial
need. It won't kick in until virtually all of your assets and your spouse's assets have been consumed. People who have higher assets or
income may end up "spending down" their savings and assets in order to be eligible.
"I Can Save Enough On My Own"
The average nursing home stay is 2.6 years and the national annual cost of a semiprivate room is $52,000. By the year 2030, it is estimated that the cost will be $190,600.
In 2000, the average cost for assisted living facility was $25,300. By the
year 2030, the average annual cost is projected to be $109,300. Costs also vary based on the level of assistance you need.
The national average annual cost of home care is well over $20,000 (that's $18/hour, five hours per day, five days a week for a home health
aide) - and it's expected to climb to $68,000 by 2030.
Will you have saved that much to pay for these types of expenses? And, if
you have that much money, will you want to spend it for long term care services? Many people will find that their assets will be depleted rapidly if
they have to pay for long term care services out-of-pocket.
"Long term care insurance is too expensive"
Long term care insurance premiums are lower the younger you are when
you buy. So, it makes sense to purchase coverage when you are younger and when premiums are more affordable. The biweekly premium if you
purchase coverage at age 40 for a plan available from the Federal Long Term Care Insurance Program that covers home and facilities care and
keeps pace with inflation is $30.05.* At age 50, if you purchase the same plan, that plan will cost $43.06*
*Sample premiums based on Comprehensive Plan with a $150 daily benefit amount, 3-year benefit period, 90-day waiting period and the
automatic compound inflation option.
|
