CNBC recently released a special report entitled “Life Changes” to help its readers navigate important financial issues related to marriage, parenthood, divorce, and long term care. The report recognizes that the big events in our lives often carry big price tags. And even though we anticipate these big events, often it’s difficult to be fully prepared…emotionally as well as financially.
Long term care planning qualifies as one of those “big events.”
According to a 2010 Met Life survey on long term care costs the national average rate in a private room in a nursing home is $229 a day, or $83,585 a year. Over two-thirds of people over the age of 65 will need some form of long term care.
The challenge, of course is how do we pay for these costs?
Government safety net alternatives such as Medicare and Medicaid are under the gun. Medicare is actually not designed to handle long term care that is custodial in nature; and Medicaid is set to run dry by 2017 according to Larry Van Horn professor of health care economics at Vanderbilt University.
According to CNBC the answer is aggressive financial planning for long term care costs. While nursing homes are expensive, home care can be less expensive. Government programs, such as Medicaid, do not pay for home health care. In the past, Professor Van Horn recognizes that “Children” were our long term care insurance. However, families have spread out over the years, and many families are dual income families today, availing a parent of less caregiving support. Today, CNBC theorizes you must have a long term care insurance policy to cover these costs.
So, when is the best time to aggressively plan and buy long term care insurance? According to CNBC it is when you are in your 50’s before future health changes may disqualify you from qualifying for long term care insurance.
LTC Partner can help you plan for this big life changing event of long term care. Comparing your long term care insurance choices and options may be daunting for you. But, we are long term care insurance specialists and will help you through the maze that is long term care insurance. Simply complete our long term care insurance quote request form to get started. Or call us toll-free direct at 1-800-891-5824 to learn what the best long term care insurance options are for you.