I just viewed an email from a stockbroker containing information on Long Term Care (LTC) and LTC insurance. It mentioned that 70% of people who reach age 65 will need LTC services. That statistic is accurate and comes from the US Department of Health and Human Services.
The email then went on to say how long the typical stay in a nursing home is, and the typical cost per year. Those numbers are irrelevant today, and that they were quoted shows how stockbrokers may not be knowledgeable enough to help you plan for LTC. They may be excellent at investing money but most are not familiar with long term care.
Stockbrokers and other investment sales people typically have a very limited array of LTC insurance products they can offer. They can only hope these limited products are the most appropriate for any particular client. In addition, most have very limited experience in dealing with LTC costs, facilities, or how services are used.
Very few people today will need to stay in a nursing home unless they are sent there for short term rehabilitation care following a hospitalization. This post-hospitalization rehabilitation care is paid for by Medicare, your health insurance. The other people living in a nursing home are primarily there because they ran out of money paying for care and had to fall back on a welfare program called Medicaid.
Most assisted living facilities no longer accept Medicaid as it pay less than the costs of care, but nursing homes who accept Medicare for rehabilitation care (their cash cow) must.
Today most LTC is provided in your home or the assisted living facilities, which can do nearly everything a nursing home did 20 years ago. Thus, in my planning with clients, we determine the amount needed for them to pay for homecare or assisted living care. These two kinds of care cover nearly 98% of the risk. People are happy to know that assisted living typically costs thousand less per month than nursing homes, and the amount of insurance needed reflects that.
Get Expert Advice Dealing with Cost of Long Term Care
If you are planning ahead, and investigating LTC insurance, consider doing so with someone with years of experience in doing just this. I am in my 27th year of planning exclusively for LTC and how to pay for it. My business comes primarily by referral from attorneys and financial planners from across the state of Wisconsin who realize they cannot be all things to all people. I am happy to help their clients find the best, most reasonable, and appropriate solution to finance LTC. I also can counsel people on how to best qualify for Medicaid if that is needed, and possibly protect some of their assets from the costs of care.
So, feel free to contact Romeo Raabe LUTCF, LTCP at www.TheLongTermCareGuy.com or by calling (920) 884-3030 to schedule a meeting to investigate.