The value of Long Term Care insurance

What is Long Term Care? The help individuals receive with daily life activities because “parts wore out” or they were having trouble with mental ability. This assistance includes activities such as help with eating, dressing, bathing, toileting, and transferring. These services are called activities of daily living (ADLs) in the long term care industry.

Who needs these services? The American Society of Aging tells us 60% to 70% of Americans who live to age 65 will require long term care services at some time.

What to do? Since the probability of a change in health, requiring long term care services, is high the most effective way to be sure our dreams of being able to maintain independence; have fun; enjoy life with work and self improvement; can be achieved is to transfer this big risk to a reliable Long Term Care insurance (LTCi) company.

Why use Long Term Care insurance? Purchasing this special kind of health insurance, which the Parker Agency calls “key” family protection©, means you will:

  • Not become a big emotional and financial burden on family.
  • Have choices in where assistance will be received e.g. at home.
  • Not have to use up your retirement nest egg.

A family member or friend may be the coordinating caregiver when assistance is needed but since it’s such a stressful job having insurance to pay for high cost professionals to come to your home to help is very important. In other words family and loved ones will help as they can and be able to care about you – but do not have to care for you 100% of the time.

What do long term care services cost in Connecticut?

  • A March 2007 survey reports a certified home health aide coming to your home in the Hartford area – say 3 times a week for eight hours can range from over $550 to $1,000 a week.
  • An October 2007 survey reports the cost for an Assisted Living facility is up to $4,700 a month in the Hartford area and to $7,700 in the Stanford area.
  • Nursing home costs in Connecticut are next to the highest in the U.S! In the Hartford area they range from $7,500 to over $11,000 a month. (private room) The Connecticut Partnership program reports the annual cost of a semi private Nursing Home now averages $103,500.

Some additional points on the value of Long Term Care insurance:

1st: Costs for the most desirable assistance at home or in assisted living are forecast to more than double in 15 to 20 years. Thus, how many big checks will you be able to write for this very expensive assistance without a special pool of funds?

2nd: Buying Long Term Care insurance early is important. Why? Premiums increase with each year of age and you avoid losing a good health discount because of a health status change.

For example, a study by the professional association American Association of Long Term Care Insurance reports 53.9% of people between 40 and 49 qualify for a good health discount. Between 50 to 59 it drops to 44.2% – 60 to 69 it’s 31.9% – 70 to 79 it’s only 18.8%. Thus waiting means you may not be eligible at all.