Own Your Future
Long Term Care Planning
Long-term care can be very expensive. Many Americans are surprised to learn that
Medicare and most health insurance plans, including Medigap policies (Medicare supplemental
insurance), do not cover long-term care. State Medicaid programs cover some long-term
care services only for people who have a low income and few resources.
While costs for nursing home care varies widely, they average about $6,350 a month.
This can cost about $60,000 to $70,000 a year, or more. People who receive long-term
care services at home spend an average of $1,600 a month.
You can plan to cover the cost of long-term care you may need in the future with
long-term care insurance, savings plan annuities, certain life insurance policies,
and reverse mortgages. The best way to pay for long-term care depends on your personal
finances and family circumstances.
Putting a financial plan in place now can help to preserve both your savings and
your peace of mind.
What Does it cover?
Long-term care insurance policies may cover nursing home stays, community services
such as adult day care, in-home care, or a combination of these services. Most policies
also cover costs
for an assisted living facility. You can choose the type of coverage that is appropriate
for you.
It is better to buy long-term care insurance at a younger age when premiums are lower.
The chart below shows the average premium by age group for persons purchasing longer-term
care insurance in 2005:
