Rising long term care costs have put a financial strain on many U.S. households. It is important that each individual do the proper planning for long term care needs.
April 2, 2007 (Press Release) --
The need for long term health care has increased in recent years. With that, the cost associated with this care has also drastically increased. This can put tremendous financial strain on one’s family and loved ones. In addition, many families must assist in providing care and housing.
The Baby Boomer era has resulted in more and more Americans being affected by long term health care. Long term care is any type of non-acute hospital care that is typically needed for more than 60 days. This care usually takes place in 3 different settings: in-home care, assisted living facility, or a nursing home. The average annual cost in the United States for this care is $55,000. In some areas these costs can reach up to $93,000 per year. Personal health insurance does not cover long term care costs, and Medicare will only cover a maximum of 90 days of care.
Many have wondered what their options are in order to offset these rising costs. Here are the 3 major options one has:
1. Pay “out of pocket”
2. Spend down their assets to the Medicaid level
3. Obtain a long term care insurance policy
The first option is for those individuals that have the money to cover the costs of long term care and/or are willing to maintain that financial risk. Many individuals don’t have this kind of money and/or don’t want to take on the risk. For most Americans, this is not a reasonable option. The next option is to qualify for Medicaid by spending down one’s assets to the poverty level. This means that one would have to lose most of the wealth they have worked so hard to accumulate over the years. Many Americans are not willing to do this and therefore eliminate this option. The last option is to transfer the risk to an insurance company by obtaining a long term care insurance policy. Long term care insurance helps in covering the costs that are associated with long term care. When care is needed, the insurance company pays for most or all of the costs resulting from the care, depending on the policy purchased. Many individuals have found this to be their best option, and worth the money. This also enables an individual to receive medical care in the comfort of their own home if they choose. A majority of those needing care prefer to stay in their own home.
Regardless of what one chooses to do, it is essential that he/she does the proper planning to prepare for a long term care need. To obtain more information on long term care insurance and the costs associated with it, go to http://www.sesinsurance.com.
The Baby Boomer era has resulted in more and more Americans being affected by long term health care. Long term care is any type of non-acute hospital care that is typically needed for more than 60 days. This care usually takes place in 3 different settings: in-home care, assisted living facility, or a nursing home. The average annual cost in the United States for this care is $55,000. In some areas these costs can reach up to $93,000 per year. Personal health insurance does not cover long term care costs, and Medicare will only cover a maximum of 90 days of care.
Many have wondered what their options are in order to offset these rising costs. Here are the 3 major options one has:
1. Pay “out of pocket”
2. Spend down their assets to the Medicaid level
3. Obtain a long term care insurance policy
The first option is for those individuals that have the money to cover the costs of long term care and/or are willing to maintain that financial risk. Many individuals don’t have this kind of money and/or don’t want to take on the risk. For most Americans, this is not a reasonable option. The next option is to qualify for Medicaid by spending down one’s assets to the poverty level. This means that one would have to lose most of the wealth they have worked so hard to accumulate over the years. Many Americans are not willing to do this and therefore eliminate this option. The last option is to transfer the risk to an insurance company by obtaining a long term care insurance policy. Long term care insurance helps in covering the costs that are associated with long term care. When care is needed, the insurance company pays for most or all of the costs resulting from the care, depending on the policy purchased. Many individuals have found this to be their best option, and worth the money. This also enables an individual to receive medical care in the comfort of their own home if they choose. A majority of those needing care prefer to stay in their own home.
Regardless of what one chooses to do, it is essential that he/she does the proper planning to prepare for a long term care need. To obtain more information on long term care insurance and the costs associated with it, go to http://www.sesinsurance.com.
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