Before we answer the question, “Do I need Long-Term Care Insurance”, lets look at some facts about Long-Term Care:
- Someone turning age 65 today has almost a 70% chance of needing some type of long-term care service and support in their remaining years.
- Women need care longer (3.7 years) than men (2.2 years)
- One-third of today’s 65 year-olds may never need long-term care support, but 20 percent will need it for longer than 5 years.(Source)
No matter what, you need a plan. A Long-Term Care event can be devastating financially and emotionally to you and your family, especially if you do not have a plan. You owe it to yourself and your family to have a plan in place in the event you need Long-Term Care.
How will you handle a Long-Term Care event?
1. Family – Family plays a valuable roll in Long-Term Care needs and end up being the primary caregivers in many LTC situations. Things to consider:
Does family have the time/money to help with your LTC need? Providing care to someone with a LTC need is very time and energy and time intensive and can be emotionally draining. Does the care giver have their own children? A job? Do they live close? Are they financially able to provide LTC? Do they have the physical ability (many times requires helping someone move, dress, bath etc…)? If you expect family to help with a LTC event you need to discuss it with them now.
2. Government – Medicaid pays for the majority of LTC care needs in America. However, to qualify for this coverage you must have spent most/all of your money on your LTC needs and you must use Medicaid facilities. Things to consider:
Do you want to pass on money, property or other assets to family? To qualify for Medicaid LTC assistance you must spend down your money (down to $2k) and after you pass away the Government can seize leftover assets (like your home) as payback for care they provided.
3. Self-Pay – Paying for your own LTC can be a viable solution. The risk of self-insuring is that you may have an extended LTC need which can be very costly. Even the average length of care can cost hundreds of thousands of dollars.
In 10 years (2028, 3% inflation) the estimated cost for LTC in Atlanta, GA is as follows:
- Home Health Aide: $4,997 a month
- Assisted Living Facility: $3,897 a month
- Semi Private Nursing Home Room: $8,094 a month
- Private Nursing Home Room: $9,360 a month (Source)
4. Long-Term Care Insurance – Long-term care insurance can be an affordable solution to the problem that many of us will face. Like all insurance, it offers an amount of protection which acts as a safeguard and safety net for your financial and familial well-being. Statistically, you are more likely to use your LTC insurance than your health, home or car insurance!
Call Georgia Health Insurance today and we will go over the different LTC insurance options to see if they are a good fit for you and your family.
We will always be honest with you and we will never pressure you. We want you to be informed so that you can develop the best Long Term Care plan possible.
You can also visit our Long-Term Care website to learn more!