Tom Bodette will leave the light on for you, but do you really want to stay there?
I surely do not! And I do not want to end up in a welfare nursing home either. Many people think that you get the same care on Medicaid as you would by paying for your care. The problem is the Medicaid reimbursement is so far below market rates only the Motel 6’s of nursing homes or assisted living homes will accept you.
You’ve planned to have a comfortable retirement, and unless you can afford 6 figures a year for a nursing home, or over $50,000 for a nice assisted living facility or home care, you should be looking into LTC insurance while still healthy enough to get it. Every year it is tougher to get this coverage, the benefits are shorter, and the costs are higher. Get it while the getting is good.
But you’ve heard that this insurance is very expensive. From proposals my clients have shown me, it is – when it is not appropriately chosen.
How does over $850,000 of benefits for a 65 year old (male of female) for less than $2000 per year premium sound? Say you pay this premium for 20 years until you are 85 years old. You spent less than $40,000 for over $850,000 of coverage, is that expensive? Is it affordable for you?
Today, less than 15% of Long-Term Care is done in nursing homes. Thus, just like flood or earthquake endorsement on your homeowners insurance, many people choose not to cover the nursing home, but purchase just enough LTC insurance to cover home care, assisted living facilities, or adult day care.
Then bear in mind that when someone needs care, their lifestyle changes drastically. No need for the second (or third) vehicle, vacation travel drops, less golf, boats, campers, motorcycles, etc. to support when they can’t be played with. Most people can cover a good part of the cost of LTC by simply repositioning the dollars from things they can’t do anymore. Interest on your life savings can help as well without depleting the balance.
OK – here is the fine print. 65 year old, male or female, buys a $70/day benefit. This plus available income and interest may be sufficient. It will give you 10 years of collecting when you need care and INCLUDES an automatic 5% compound increase on your benefits every year.
You pay $1980.94 per year for 20 years. On the 21st year you need care and file a claim which starts at $185/day (remember the automatic inflation included) and will increase over the 10 years you collect until it reaches $288 per day for a total of $852,603 paid out to you. If your care costs less, you get all the money for every day of care regardless.
If you can’t find a deal this good with an A+ rated company, no matter where in the USA you live, call (800) 219-9203 and talk to us at www.TheLongTermCareGuy.com