People buy long-term care insurance to protect their life savings; so they won't be a burden on their spouse or children.
They buy for "Peace of Mind".
Long-term care is one of the biggest financial risks left unprotected as we approach and enter retirement. Consider:
- People are living longer.
- The cost of long-term care is high and rising. The national average cost for a nursing home stay is $75,555 for a semi-private and $83,950 for a private room per year and can run as high as $250,000 in some areas. (Genworth 2013 Cost of Care Survey). The study shows that:
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- The national average daily rate for a private room in a nursing home is $230, while a semi-private room is $207. An increase of 3.60% and 3.30% over 2012.
- The national average monthly base rate in an assisted living community is $3,450 an increase of 4.55% over 2012.
- The national average: hourly rates for home health aides ($19) and homemakers ($18) and daily rates for adult day services ($65) were unchanged from the previous year.
- The risk is high. According to estimates, the odds are 70%. Currently, six out of every ten Americans who reach age 65 may need long-term care at some point during their lives. (U.S. Department of Health and Human Services)
- It is difficult to predict how much or what type of care any one person might need. On average, someone age 65 today will need some long-term care service for three years. Service and support needs vary from one person to the next and often change over time. Women need care for longer (on average 3.7 years) then do men (on average 2.2 years). While about one-third of today’s 65-year-olds may never need long-term services, 20 percent of them will need care for more than five years.
- Neither company nor private health insurance plans cover the cost of long-term care. Government programs provide only limited assistance [Tell me more]