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Long terminsurance planningforyourfuture

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Long terminsurance planningforyourfuture

  1. 1. Long-Term Insurance: Planning for Your Future
  2. 2. Long-Term Care Costs Skyrocketing • An ounce of prevention is worth a pound of cure • The cost of long-term care is skyrocketing • Middle-aged individuals – or older – who haven’t prepared to meet long-term care costs could get burned
  3. 3. Costs of Long-Term Care • According to LTCTree.com, demand for long-term care is at an all-time high: – 75% of people 65 and older will eventually need long-term care – About 80 million Americans will turn 50 over the next 18 years – By 2020, one in three workers will be faced with providing LTC to their baby boomer parents • Average cost of a one-year stay in a nursing home: $80,850 • Can be as high as $100,000 • 75% of American singles and 50% of couples spend almost all their retirement savings in the first year of living in a nursing home • Long-term insurance can help
  4. 4. How Long-Term Insurance Works • Introduced 30 years ago – Supplement to Medicare’s limited nursing home coverage – Covers a multitude of services for elders • Typical policy covers: – Nursing home services – Home healthcare services – Assisted living facilities – Respite care – Hospice care – Adult day care – Care advisory services – Medical equipment – Home modifications
  5. 5. How Much Does It Cost? • Full menu • American Association for Long-Term Care’s 2009 Sourcebook: – Ages 50 and 54 paid as little as $989 per year – Ages 60 and 64 paid $1,125 (minimum) – Average cost of long-term insurance between $1,800 and $2,000 per year – Costs of $3,000 or higher are not uncommon
  6. 6. Is Long-Term Insurance Right for You? • Make sure you need it • If you’re approaching retirement, are low on cash and savings – you may not need long-term insurance – Low savings may qualify you for Medicaid, which will cover much of the costs (but not all)
  7. 7. Pros and Cons of Long-Term Insurance • Long-term insurance pros: – Prevent your life savings being spent on senior care – Give you leverage in choosing the senior care facility that’s right for you – Prevent you from having to tap into your family funds – Tax-deductible premiums • Long-term insurance cons: – Cost burden as you near retirement – May be unnecessary – especially for low-income earners – Not cover all of your long- term care costs
  8. 8. Long-Term Insurance: The Bottom Line • Do your homework and gather the data you need • Follow through with payments every month to avoid lapses in coverage • You may not need long-term insurance soon, but chances are you will need it someday
  9. 9. SeniorHomes.com • Information in this presentation provided by senior finance expert Brian O’Connell • SeniorHomes.com is a free resource for seniors and families searching for housing and care services • Visit http://www.seniorhomes.com for more information on senior housing
  10. 10. SeniorHomes.com • Information in this presentation provided by senior finance expert Brian O’Connell • SeniorHomes.com is a free resource for seniors and families searching for housing and care services • Visit http://www.seniorhomes.com for more information on senior housing

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