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LONG-TERM CARE INSURANCE 101
Choosing the "Right" Long-Term Care Insurance
Long term care is assistance provided to people who have a condition or illness that limits their ability to perform normal daily activities.
Long term care insurance pays for the care people need when they can't perform the ordinary tasks of daily living - like eating, dressing, and bathing. Long term care can be offered as home health care, skilled nursing, or in a nursing home.
Is retirement on your mind these days? Chances are you've spent all of your time thinking about how you will fund your retirement. But what about long term care health events that could financially drain your assets?
Financial experts agree that adequately funding your long term care needs is the most important factor when considering a financially successful retirement.
Over 50% who live past age 65 will need and use long term care. A 40 year old today can expect to live, on average, another 43.6 years. With medical technology advancing and people living longer, planning for your long term care funding could be one of the most important decisions you ever make. Here's why.
The average Sacramento, California private nursing home or day of home health care now costs $240 a day, or $88,000 a year. These costs trend to $500,000 a year in 30 years.
Funding for long term care comes from three sources. 1) self-funding, 2) Medicare, and 3) MediCal. Medicare pays only 14% of long term care in this country.
With strict definitions, the following criteria must be met to receive Medicare long term care benefits:
- You must have received inpatient hospital care for at least three nights
- You must have entered a nursing facility within 30 days of your hospital stay
- You must have entered the care facility for the same reason that necessitated the hospital stay.
Your co-payment for days 21-60 in a skilled nursing facility is $119 per day.
The average length of Medicare benefits is 23 days. Medicare does not pay for home health care.
To qualify for MediCal, the applicant must be impoverished with less than $2,000 in assets.
Health insurance does not adequately cover home health care, skilled nursing, and/or nursing home care. Traditional private health insurance imposes serious limits or entirely excludes long term care benefits. It does not pay for any type of custodial care.
Funding long term care will become a social crisis as the baby boomers age. The "boomers" are already addressing what to do with their parents.
If taking care of yourself in your time of need without financially burdening your family is important to you…and you desire to guarantee your long term care funding, then serious consideration should be given to obtaining long term care insurance. Long term care is a family issue with emotional, physical, and financial impacts.
The Fred Simmons Insurance Agency can help you choose the right long term care insurance policy designed to not only provide dignified, quality long term care for yourself, but also to protect your assets so you won't squander everything you've ever worked for on long term care expenses. We'll help you choose the long-term care insurance coverage most suited for you. "Insurance of Value" - "smart" coverage for the "right" price!
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