THE SPROUSE INSURANCE AGENCY
434.847.4340
It's hard to believe, but the estimated risk for needing Long Term Care continues to climb with each passing year. Now, the Federal government estimates that each individual has a 70% chance of needing Long Term Care in their lifetime. Recent studies reveal that if you are 60 years old you have more than a 60% chance of needing long term care. If you are over 65 years old, your chances of needing care goes up to 70%.
The Long Term Care Cycle
91% of Americans surveyed said they would prefer receiving Long Term Care at
home. Indeed, of those needing care only 5% are in Skilled Nursing Facilites.
12% are in Assisted Living Facilities and more than
80% are receiving Home Care
Therefore, it isn't a surprise that most Long Term Care starts at home with the help
of family or friends until the caregiving burden becomes a too much of a hardship.
The next step might be to hire a paid caregiver to help with care duties in the home.
Yet many people can't afford such a luxury, even if they hire unskilled, unlicensed,
unsupervised "grey market" caregivers. As care needs increase the next care setting of preference is Assisted Living Facilities, as they are more like hotels than the hospital-type setting of a Skilled Nursing Facility. Most people do everything in their power to stay out of nursing homes, which is one reason why the average nursing home stay is only 2.5 years.
While most Americans suspect that they might need long term care "sometime"
in the future, many underestimate care costs and falsely assume that Medicare or
their health insurance will pay for extended care. They will not. Medicare will only
pay for a short time and only under specific, limited circumstances. The only
governement agencies that pay for Long Term Care are Medicaid and the Veteran's
Administration. Both are notorious for their lack of care quality and poor quality of
life for their residents.
When Should I Buy Long Term Care Insurance?
The sooner the better! LTC insurance premiums go up in price as you get older,
although once you buy a policy your premiums do not rise due to aging or health. For
years, financial planners were telling their clients to wait until age 65, but this is no
longer considered sound advice. The Federal and State Partnership Programs
encourage people to buy as early as age 40, mostly to increase the financial security
of the programs, but also to ensure that people do not become a burden on
Welfare/Medicaid if they get sick or injured at an early age and need long term care.
If you can afford the premium for years to come, buy now to protect yourself and
your family.
You need Long Term Care?
