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Long Term Care Insurance for nursing care

Nursing home stays are generally not covered by Medicare, yet they can be very expensive and often very long.

Indeed, one of the biggest health expenditure shocks a retired individual can experience is entry into a nursing home or the need for in home nursing care. Long Term Care Insurance (LTCI) can safeguard people from the catastrophic costs of nursing home care, but few people purchase Long Term Care Insurance. As a result, those who live long enough in nursing facilities can lose all of their nest egg dollars until those expenses are picked up by Medicaid.

Although home health care is generally less expensive than nursing home stays, the John Hancock 2011 National Long-Term Care Cost Study suggests that the average cost for a home health aide is $20 per hour ($37,449 per year). The percentage of Americans ages 65 and older who use professional home health care services and have Long Term Care Insurance to help pay for it has seen a steady increase. From 2000 to 2004, only 9.7 percent of those who used professional home health care were also insured for the expense. By 2010, that percentage increased to 13.2 percent. That’s because nursing facilities can deplete your nest egg dollars very quickly, especially if you have the need for Long Term Care for multiple years.

Early Retirement Planning

It’s not easy to foresee the future and to know what kind of care you’ll need in your golden years. However, nobody wants to lose their nest egg dollars to nursing facility costs. So, be a savvy retirement planner and be sure to add Long Term Care Insurance into your retirement planning strategy. Use my expertise to get it done.

Freeman Owen, Jr - Host of "Safe Money Talk" on CBS Radio The Big Talker 1580AM

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Source: June 2012 | Employee Benefit Research Institute | “Effects of Nursing Home Stays on Household Portfolios”