For years, women have been the family caretakers. Studies show women are more likely than men to handle childcare, tend for aging parents and prepare for the family’s future.
Long term care, as a concern for a family’s future and aging parents, has become part of these women’s care-taking responsibilities. Long term care is designed to help people with chronic needs, especially those in nursing or assisted-living homes.
Women should pay attention to long term care issues not only because they are more likely to be the one choosing it for family members, but also because they are more likely to need long term care themselves.
Women are more at risk physically
On average, women live seven years longer than men. It’s no surprise that, according to the Social Security Administration, 58 percent of the 62-and-older crowd and 70 percent of those age 85 and older are women. In turn, more than two-thirds of nursing home residents are female, according to the Agency for Healthcare Research and Quality.
Long-term medical assistance may be needed for anything from physical therapy after a stroke or fall to developing a mental disability, such as Alzheimer’s. Because women live longer, they stand more of a chance of developing these needs.
Women are more at risk financially
Since women are more likely to need long term care for longer periods of time, it is likely they will incur higher long term care costs than men. Women should plan and save for such an event, but unfortunately, that is not usually the case.
Women traditionally earn less than men and are more likely to have interrupted their careers to raise their families. As a result, their personal savings, pensions and Social Security benefits may all be lower. At the end of 2003, women’s average monthly retirement benefit was $798, while men’s average monthly benefit was $1,039, according to the Social Security Administration.
According to the 2002 U.S. Census, men age 65 and older make about $20,000 annually, while women in the same age group are worse off, with an annual income of $11,000.
As you can imagine, long term care is not cheap. 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. In Portland, Oregon, long term care in a nursing home is expected to cost $80,000 in 2009 for a private room.
As the family-care experts, more women are learning that depending on Medicare and Medicaid is not an option.
According to the American Society on Aging (ASA), 46 percent of those who currently have health insurance believe it would cover most of the costs related to long term care. In reality, long term care is rarely covered by health insurance plans.
In addition, an ASA Roper study showed nearly a third of insured people are unaware that, while Medicaid does cover long term care, it is only available to those who have depleted nearly all of their own financial resources.
What women should know
All hope is not lost. Most insurers now offer private plans for long term care insurance, though not all long term care policies are alike. Some cover the cost of only nursing home care; others cover both nursing home and in-home care. Some offer tax-free benefits; others provide premium discounts if policies are purchased for both a husband and wife. Good policies offer all of these options and more.
Good policies should also come from a financially secure insurance company. Due to the necessary long-range financial commitment, the company should also have a history of keeping long term care premiums stable.
People approaching age 50 should especially consider obtaining a long term care insurance policy. But it’s best to obtain a policy as early as possible (you can get a policy as young as age 18) because the annual premium payments are lower, and it’s easier to qualify for a policy. If a person ends up needing daily living assistance and suddenly realizes there is no money to pay for it, it’s too late. As proactive caregivers for themselves and family, women can benefit by investigating the benefits of long term care insurance.
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