Additionally, the reliable information can sometimes be hard to find”.
Laura is putting together a resource guide for seniors regarding Medicare and hopes that this will give senior citizens and their families access to reliable, up-to-date information quickly and in a format that is easy to understand. For more information you can contact Laura on firstname.lastname@example.org or via the assisted living website.
Of course it is not just seniors who require long term care or assisted living and it is estimated that around 40% of people currently in receipt of care are aged between 18 years and 64 years old.
The cost of nursing homes, assisted living and long term care is staggeringly high and rising and it is important that we make adequate financial planning in case we require any or all of these services.
Long Term Care Insurance
- Long term care insurance is one way to ensure that you are fully covered for assisted or full time care but the policies are often expensive and many providers are dropping out of the market or increasing premiums.
- The American Association of Long term Care Insurance estimate that the cost of insurance for a single person aged over 55 is around $2000 per year for a single person and $2400 per year for a couple.
- The insurance Industry is always seeking to reduce its risks and the cost of long term care is increasing every year. For some the cost is becoming unaffordable and many companies are now looking for alternatives to long term care insurance.
- You can compare the cost of care in different US states on https://www.genworth.com. Genworth also offer options to help families facing increasing cost of long term care.
Alternatives to Long – term Care Insurance
The Chairman of the Life Foundation Deb Newman says that “today more than 85% of care is received outside of nursing homes”. The cost of receiving care at home is much less than nursing home or assisted living care and insurance costs are also reduced.
In a recent article in the Wall Street Journal, a number of “experts” were asked “Should People Buy Long-Term-Care Insurance?”
For Alicia Munnell director of the Centre for Retirement Research at Boston College, there is a need for a new Innovative Alternative to Long Term Care particularly for middle Income Americans.
“Rich people and poor people don’t need long-term-care insurance” she states. “Poor people can turn to Medicaid. Rich people can self-insure. So the question comes down to those in the middle……..In my view, the solution is to construct a new type of product, one that insures against long stays in nursing homes.
For example, middle-income individuals would be responsible for paying for the first year or two and the insurance would kick in thereafter. This type of catastrophic coverage would be cheaper and could be paid for with a lump-sum payment upfront so that neither the provider nor the purchaser would have to worry about paying premiums. Long-term-care insurance is certainly an area where we need innovation”
What are the costs of Long Term Care Insurance?
- Your age at the time of purchase
- The policy type
- The coverage you select
Planning for Long Term Care
The US department of Health and Human Services provide an excellent source of information on their website covering all aspects of long term care. http://longtermcare.gov/