Protect Your Savings
The need for long-term care services impacts 70% of individuals 65 and older, according to the US Department of Health and Human Services. The cost of long-term care for yourself or an aging parent can rapidly deplete years of savings, potentially providing a devastating blow to your retirement plans. Long-term care can be one of the most catastrophic financial risks you face.
With the right combination of life insurance, retirement planning and medical insurance, it was once possible to feel relatively secure about one’s future. Americans today, however, face a new financial risk that stands to have a multi-generational impact for those who don’t prepare. The need for long-term care services impacts 70% of individuals 65 and older, according to the US Department Health and Human Services.
The bottom line is that the cost of long-term care, for yourself or an aging parent, can rapidly deplete years of savings, potentially providing a devastating blow to your retirement plans. It’s why some financial planners are looking at Long-Term Care Insurance as an integral part of long-range planning; as this can be one of the most catastrophic financial risks you face.
The Cost of Long-Term Care
According to the Department of Health and Human Resources, one year of care at home, assuming you need periodic personal care help from a home health aide (average of three times per week), would costalmost $18,000 per year. Those with greater needs may face annual nursing home costs which average $68,000 nationwide and approximately $90,000 in Hawaii. The US Department of Health and Human Services further reports that 40% of individuals 65 and older will need care in a nursing home for some period of time.
How Expensive
is Long Term Care? Daily Room
Rates (2010)
|
Long Term Care Facility |
Skilled Nursing Care Intermediate Care |
2 |
3 |
1 |
2 |
3 |
||
|
Hale Ho Aloha |
|
$205 |
$195 |
|
$205 |
$195 |
||
|
Leahi Hospital |
$345 |
$338 |
$332 |
$345 |
$338 |
$332 |
||
|
Maluhia Hospital |
$310 |
$290 |
$285 |
$310 |
$290 |
$285 |
||
|
1=Private Room 2=Semi Private 3= Ward: 3-4 Beds |
|
|
|
|
|
|
Even the most basic services will add up. Health care costs are as follows*:
Bathing Assistance: $22.00/hour
Registered Nurse: $50.00/hour
Adult Day Care: $80.00/day
Adult Day Health: 98.00/day
*Genworth 2009 Cost of Care Survey ; 2010 Leahi Day Health; RN, Bath-Home Assist 3hr min.
Will Medicare and Medicaid help with Long-Term Care?
Some individuals misunderstand what Medicare and Medicaid will cover in the case that long-term care is required. Generally speaking, Medicare does not pay for long-term care. Medicare will pay for certain medically necessary skilled nursing facility or home health care services for eligible individuals only. That likely will not include Activities of Daily Living (ADL) services.
Medicaid, the joint federal and state assistance program for seniors with low incomes and limited assets, will pay for some long-term care costs if you meet the program’s criteria. However, because assets must be so low in order to qualify, individuals with middle to upper-level incomes are wise to consider Long-Term Care Insurance to help cover the expenses they may someday face.
The Best Time to Buy Long-Term Care Insurance is Now
With such daunting statistics, it’s no surprise that Long-Term Care Insurance has become a key strategy to help secure the future of many Americans. Simply put, it is prudent to plan in advance for the possible long-term care needs of your family, as you do with other financial aspects of your life. Remember that buying insurance while you are young allows you to receive a better rate and secures your policy before the possibility that a health risk precludes your eligibility.
With Long-Term Care Insurance, you may rest assured that you will be able to receive the care and services you need while you protect your savings and ease the potential burden on your family. To learn about the wide array of benefits of Long-Term Care Insurance available through reliable, top-performing providers like John Hancock, MetLife and Genworth, contact a Royal State Insurance agent today at sales_service@royalstate.com or call 808-539-1600.
