...Long Term Care Insurance...
2006 National Average Annual Care Cost Analysis
Facility Care:
| Care Type | National Lowest |
National Highest |
National Average |
| Nursing Facility (Private Rm) |
$42,000 | $192,000 | $71,000 annual $195 per day |
| Nursing Facility (Semi-Private) |
$35,000 | $178,500 | $62,500 annual $170 per day |
| Assisted Living Facility (1 Bedroom) |
$21,000 (excluding fees) |
$57,500 | $32,500 annual $2,700 $188 per day |
| Fees: Community or Entrance Fees | $50 | $8,500 | $1,400 |
In-Home Care:
| Care Type | National Lowest Hourly Rate |
National Highest Hourly Rate |
National Average Hourly Rate |
| Home Health Care Aid (General) | $6 | $292 | $25 |
| Homemaker Services | $6 | $65 | $17 |
| Certified | $7 | $292 | $36 |
| Licensed Not-Certified |
$6 | $175 | $22 |
| Not-Licensed Not-Certified |
$7.25 | $30 | $17.50 |
To learn the current, average long term care costs in your state click here.
What happens if you don't have LTC insurance, but you need long term care?
There is nearly a 50% chance that, during retirement, due to medical conditions or extended longevity, a person will eventually end up requiring 24-hour skilled nursing care in a long term care facility. Now let's look at the average length of facility care and the projected cost for that care:
Long Term Care - It's Leading Causes & Average Lengths of Nursing Home Stays ( from Financial Planning News )
| Leading Causes: |
|
| Alzheimer's |
|
| Diabetes |
|
| Pulmonary |
|
| Cancer |
|
| Stroke |
|
| Cardiac | 16 months |
At room rates of $300.00 per day, if care costs inflate at least 5% annually, then 10 years from now the average private Alzheimer's stay could cost a family $ 1,400,000.00+
Wow! Do you want your family to pay THAT out of savings?
BREAK-EVEN ANALYSIS
Long term care insurance can cost from under $100/mo. to over $1000/mo.
So sure, it can seem expensive, yet consider this:
At 5% annual compounded inflation, in 10 years, actual real-life care costs could mount to well over anything you might ever put into LTC insurance.
Just do the math!
The annual long term care insurance premium investment is often less than the actual cost of just ONE MONTH in a care situation.
NOTE: Recent industry articles indicate that long-term care insurance is such a valuable planning tool that financial advisors may face legal action if they neglect to at least recommend consideration of coverage. (Trusts & Estates Magazine)
In any case, long term care insurance may make good financial sense for you.
The early bird gets the worm because the lowest long term care insurance prices are locked in at the younger ages and are designed to remain level thereafter. HOW MUCH WILL LONG TERM CARE INSURANCE COST you for YOUR unique circumstances? - To get your personalized, multi-company, price comparisons for long term care insurance, check out the Buyer's Advocate.