THE NEED FOR LONG-TERM CARE INSURANCE
Separating FICTION from FACT
Few people are prepared to handle the financial burden of long-term health care. In fact, many people have a false sense of security when it comes to long-term care.
Fiction Fact: “Medicare and my Medicare supplement policy will cover it.”
In fact, Medicare and “Medigap” insurance were never intended to pay for ongoing, long-term care:
• Only about 12% of nursing home costs are paid by Medicare, for short-term skilled nursing home care following hospitalization. (Source: Guide to Long-Term Care Insurance, AHIP, 2013)
• Medicare and most health insurance plans, including Medicare supplement policies, do not pay for long-term custodial care. (Source: 2016 Medicare & You, Centers for Medicare & Medicaid Services)
Fiction Fact: “It won’t happen to me.”
• At least 70% of people over 65 will need long term care services and supports at some point in their lives. (Source: 2016 Medicare & You, Centers for Medicare & Medicaid Services)
• About 68% of nursing home residents and 72% of assisted living residents are women. (Source: Long-Term Care Services in the United States: 2013 Overview, National Center for Health Statistics)
Fiction Fact: “I can afford it.”
• As a national average, a year in a nursing home is currently estimated to cost about $91,000. In some areas, it can easily cost well over $100,000! (Source: Genworth 2015 Cost of Care Survey, March 2015)
• The average length of a nursing home stay is 835 days. (Source: Centers for Disease Control and Prevention, Nursing Home Care FastStats, last updated May 2014)
• The national average cost of a one bedroom in an assisted living facility in the U.S. was $43,200 per year in 2015. (Source : Genworth 2015 Cost of Care Survey, March 2015)
• Home health care is less expensive, but it still adds up. In 2015, the national average hourly rate for licensed home health aides was $20. Bringing an aide into your home for 20 hours a week can easily cost over $1,600 each month, or almost $20,000 a year. (Source: Genworth 2015 Cost of Care Survey, March 2015)
Fiction Fact: “If I can’t afford it, I’ll go on Medicaid.”
Medicaid, or welfare assistance, has many “strings” attached and is only available to people who meet federal poverty guidelines.
Whether purchased for yourself, your spouse or for an aging parent, long-term care insurance can help protect assets accumulated over a lifetime from the ravages of long-term care costs.
MESSAGES from the Masters…
TODAY IS YESTERDAY’S TOMORROW
by Jim Rohn
The problem with waiting until tomorrow is that when it finally arrives, it is called today. Today is yesterday’s tomorrow. The question is what did we do with its opportunity? All too often we will waste tomorrow as we wasted yesterday, and as we are wasting today. All that could have been accomplished can easily elude us, despite our intentions, until we inevitably discover that the things that might have been have slipped from our embrace a single, unused day at a time.
Each of us must pause frequently to remind ourselves that the clock is ticking. The same clock that began to tick from the moment we drew our first breath will also someday cease.
Time is the great equalizer of all mankind. It has taken away the best and the worst of us without regard for either. Time offers opportunity but demands a sense of urgency.
When the game of life is finally over, there is no second chance to correct our errors. The clock that is ticking away the moments of our lives does not care about winners and losers. It does not care about who succeeds or who fails. It does not care about excuses, fairness or equality. The only essential issue is how we played the game.
Regardless of a person’s current age, there is a sense of urgency that should drive them into action now – this very moment. We should be constantly aware of the value of each and every moment of our lives – moments that seem so insignificant that their loss often goes unnoticed.
We still have all the time we need. We still have lots of chances – lots of opportunities – lots of years to show what we can do. For most of us, there will be a tomorrow, a next week, a next month, and a next year. But unless we develop a sense of urgency, those brief windows of time will be sadly wasted, as were the weeks and months and years before them. There isn’t an endless supply!
So as you think of your dreams and goals of your future tomorrow, begin today to take those very important first steps to making them all come to life.
To Your Success,