Some of my clients have asked about protecting their assets in case of a nursing home stay or long term care scenario. They wonder if they need Long Term Care Insurance. I would like to share these facts with you, which make a compelling argument for it:

  • According to the Centers for Medicare & Medicaid Services, a person turning 65 today has nearly a 70% probability of needing long-term care in the future. About 20% of today’s 65-year-olds will need such care for at least 5 years.1
  • The median annual cost for a private room in a nursing home was $91,250 last year. Genworth’s Cost of Care Survey says that price has been rising about 4% annually.2
  • Medicare will not take care of your long-term care needs. Medicare pays only for approved charges, only for skilled and rehabilitative care, only after three days and nights of hospitalization, and only for a maximum of 100 days under these conditions.3
  • Medicaid will pay for required care only when you have low income and assets (i.e., after your assets have been spent down to meet its guidelines).4
  • Long Term Care (LTC) Insurance isn’t limited to nursing home coverage; it can also cover rehabilitative and therapeutic care, and in-home help with tasks like eating or dressing.

If you would like to discuss some options and ask questions, we can help you design Long Term Care coverage that is effective and affordable and right for your financial goals.