Long-Term Care. Whether in a nursing home, assisted living facility, or in-home care, there is a very likely chance of a person needing some type of skilled or custodial care in their lifetime. According to studies done by AARP, about 70% of people who reach age 65 are expected to need some form of care at least once in their lifetime. Other than the obvious reason of the high likelihood of needed LTC, let’s look at 5 reasons my clients have decided to buy LTC Insurance.
- Choices – People like to have the choice of where they receive their care. Some want nothing to do with a nursing home or would prefer a private room. Medicaid (welfare) doesn’t allow for choices.
- Estate Protection – If the LTCi policy is considered a partnership policy you are protected from the normal Medicaid requirement to spend down your assets and income. (These plans are state specific, check with your states insurance department for availability)
- Tax Purposes – If you own a tax-qualified plan and itemize deductions you may be able to deduct part or all of your premium. This is an extreme advantage to small business owners! (you should consult with your tax accountant)
- The Cost of Care – The cost of care isn’t cheap! According to the US Dept of Health and Human Services, the national average for a private nursing home room is $253/day ($7,698/month or $92,376/year). In home care cost around $20/hour. This pales in comparison to the premium cost for a Long-Term Care Insurance policy.
- Not Being a Burden – This is a huge one. Medicare and Medicaid don’t cover all services. This requires family members to provide some of the non-skilled and custodial care to their spouse or parent. Yes… that is changing diapers. Caring for a loved one can create a rift in the family dynamic, and most people I know want those last memories to be cherished and loving for their survivors, not of disgust and pain.