Long-Term Care

Protect Your Life Savings With a Long Term Care Policy

At some point, almost everyone has thought, “That will never happen to me.” However, unexpected events such as accidents and serious illnesses happen all the time. Do you have the financial ability to pay for long-term medical care?

According to the Americans for Long Term Care Security, more than half of the U.S. population will need long term care at some point during their life. Many people assume that Medicare, supplemental policies or standard health insurance policies will cover long-term medical expenses, so they do not plan financially for their long-term care needs.

Financial planning for long-term care is important because long-term medical costs are expensive. According to the latest survey by one of the most comprehensive and respected surveys in the industry, in 2004 the average annual cost for a semiprivate room in a nursing home is $61,685 and $70,080 for a private room*. Those costs translate to an average of $169 per day for a semiprivate room and $192 per day for a private room. A home health aide can potentially cost about $37,000 per year.

If you are between the ages of 18 and 84, you may be eligible for a Tax Qualified Long Term Care Insurance policy. Plans are flexible and can be tailored to meet specific needs. These policies can be paid up in as little as 10 years or by age 65.

Comprehensive: Provides a wide range of benefits, including coverage for a nursing facility or home care.

Facility Only: Provides coverage for services from a nursing facility.

Shared Benefit: Covers expenses from a nursing facility or home care, and benefits both husband and wife.

The Long Term Care benefit riders can be added to some new whole life policy at time of purchase. This adds flexibility to your coverage. For example, if you need help paying nursing home or other long-term care expenses, the policy’s death benefit can be withdrawn while you are living.

Don’t risk the possibility of spending your life savings on long-term care. For help determining the right long-term care visit the U.S. Department of Health and Human Services website, it provides information and resources to help you and your family plan for future long-term care needs. Email me and I will mail you a free copy of the National Clearinghouse for Long-Term Care Information’s “Long-Term Care Planning Kit”.

* Surveys conducted by MetLife Mature Market Institute.