The High Price of Not Having Long-Term Care Insurance

The cost for caring for elderly parents and family continues to increase each year. The median bill for nursing home care is now $91,250 a year according to the Genworth survey [1].  As the cost for long-term care or nursing home stays continue to climb more families are scrambling to find ways to pay for the necessary care.  The cost of staying in a nursing home has increased 4% every year over the last 5 years [2].  Last year, the bill was $87,600.

Unfortunately, many seniors do not know the true cost of long-term care or who expensive it could end up being for their families.  There is a serious miscommunication that Medicare covers the cost of assisted living, nursing homes or adult day service, however it does not.  Medicare ONLY covers short term stays for rehabilitation after a surgery. In order to be financially covered seniors must purchase a long-term care policy that will protect them and their savings.

What does Long-Term Care cover?
  • Your home
    • Skilled nursing care
    • Occupational, speech, physical, and rehabilitation therapy
    • Help with personal care, such as bathing and dressing
  • Adult day service centers
  • Hospice care
  • Respite care
  • Assisted living facilities (also called residential care facilities or alternate care facilities)
  • Alzheimer’s special care facilities
  • Nursing homes

Seventy percent of consumers over the age of 65 will need long term care (LTC) at some point in their lifetime, according to the Centers for Medicare & Medicaid Services.  With rising costs it’s not a matter of IF one should purchase coverage, but WHEN one needs to consider purchasing a policy to protect their financially livelihood. As a senior insurance agent, in order to take care of your clients-have you spoken to your clients about this topic? Even if they do not purchase coverage, your duty is to educate clients and warn them about potential problems down the road.

If you want more information about long-term care or want to add this product to your agent tool kit, call your Personal Agent Liaison (PAL) or our office to talk to an advisor: 800.695.0280


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