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Why You Need Nursing Home or Long Term Care Coverage

Guest post by: Alston Balkcom

Article Overview: There are many reasons why it is so important to have long term care coverage. Close to 70% of those who live to age 65 will need some type of living assistance in their lifetime. The average period of time in a long term care facility is between two and three years. The average cost varies considerably by region, but expect to pay over $150,000.

Why You Need Nursing Home or Long Term Care Coverage

There are many reasons why it is so important to have long term care coverage. Close to 70% of those who live to age 65 will need some type of living assistance in their lifetime. The average period of time in a long term care facility is between two and three years. The average cost varies considerably by region, but expect to pay over $150,000. Can you write a check for this? 40% of us pay out of pocket. 50 percent of all couples and about 7 of 10 individuals are impoverished in less than one year after entering a long term care facility.

There are three basic options of paying for nursing home care: Medicaid, your investments or other assets, or Nursing home insurance coverage. For individuals with low income and assets, Medicaid pays for time in a nursing home. In most parts of the country 50% to 65% of residents of nursing home are funded by Medicaid. In facilities where Medicaid is the primary source of funds you will find that they (which offers a very low reimbursement rate) generally offer a lower standard of care..

It should be noted that Medigap does not pay for assisted living costs. It only pays for a limited amount of care after a qualified hospitalization. This is for skilled care only and most nursing home care is custodial. 75% of these costs (as opposed to custodial nursing home expenses) are paid by the the person needing care.

It takes quite a large estate to be able to fund a typical stay in a nursing home, and still leave enough for a surviving spouse's living costs and the nursing home care that they may need in the future.

As the average retirement “nest egg” is slightly under $350,000, very few families can afford the cost of even one spouse who needs who needs care in a long term care facility, let alone two. It's not uncommon that one spouse becomes ill and needs to go to a nursing home. This can result in leaving the remaining spouse in poverty for the rest of his or her life.

Because of this, many people are recognizing the need for Long Term Care insurance coverage for estate preservation for the longest period of time.

Yes, there are some people who will never use Long Term Care insurance – approximately 30%. Even so, the average long-term care insurance plan purchased by a 65-year-old and held until death pays out 82 cents for every dollar of paid in premiums.

Long Term Care insurance contracts are not standardized. There is a confusing array of options available. Therefore it is may not be a good idea to research and buy LTC without help. A good agent will know which coverages each insured needs, and be able to able to give you good advice. A long term care insurance agent is the best resource to compare contracts, coverage, and endorsements. Your broker can make sure the policy purchased is the right plan for the individual situation.

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Article Tags: long term care, long term care facility, nursing home, term care coverage
Referred by: http://www.searchengineworkshops.com



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