Long Term Care Insurance

Every American has heard about The Affordable Care Act or Obamacare.  But did you know that your highest cost expense may be in the final years of your life?  Today, the high cost of long-term nursing care ranges from $200-$350 per day depending on where you live.  Based on 3-5% inflation, the expected costs in 20 years could be as high as $500 -$1,000 per day.  The average stay at a nursing home is 2.5 years.

Long-Term Care can be defined simply as care provided by another party for the benefit of someone who is unable to care for themselves.  The kind of help you need if you are unable to care for yourself because of aging, an illness, or a disability.

There are several ways to pay the cost the high cost of Long-Term Care.

  • Government Funded/Medicaid – you must spend down virtually all of your assets prior to becoming eligible and you may not be able to receive services at the facility of your choice.
  • Traditional Long-Term Care Insurance – the annual premium for a 55 year old ranges from $3,000-$5,000 depending on the daily benefit and length of stay. Most plans offer a pool of benefits for a couple and a discount is given.  Inflation riders are available at a high cost.
  • Universal Life Insurance Policy with a Long-Term Nursing Care Rider – provides a pool of money for long-term care in lieu of a death benefit if you meet 2 of 6 activities of daily living.
  • Single Premium Whole Life – A new option where a pool of dollars already invested at low rates can be transferred to a single-premium whole life policy which allows access to the death benefit for qualifying long-term care expenses. A well-known insurance company gives a guarantee of principal and a death benefit which if never needed allows for a long-term conservative investment pool.

The challenge becomes protecting your assets while maintaining your current lifestyle.  This is an opportune time to consider the value of long term care insurance so you can feel safe and secure knowing you have some control over the cost of long-term care expenses.

For more information go to http://www.partnershipforlongtermcare.com/ohio-partnership/index.html