How will you pay for increasingly expensive care if you or a family member
experience a chronic condition such as Alzheimer's disease or dementia?
The average nursing home stay in the United States is 2.4 years and costs approximately
$185,070. The MetLife Market Survey of Nursing Home & Home
Care Costs, September 2006. With the rising cost of care, long-term care
insurance is becoming an increasingly important planning tool.
WHAT IS LONG-TERM CARE INSURANCE?
Long-term care insurance is an insurance policy that helps to pay for the
care of chronic conditions. This insurance may cover the cost of services for
nursing, diagnostic, preventive, therapeutic, and rehabilitative care. Policies
are offered on an individual or a group basis.
HOW MUCH DOES LONG-TERM CARE INSURANCE COST?
As with other types of insurance, premiums for long-term care insurance vary
by the applicant's age and health, the region, and the amount of coverage.
A long-term care policy can cost from $1,000 to $15,000 per year or more. Since
age is a factor, some advisors suggest purchasing a policy before reaching
the age of 60 or 65. Keep in mind that Oregon law allows the insurer to go
back 10 years in the applicant's health history.
WHO NEEDS LONG-TERM CARE INSURANCE?
Long-term care expenses can easily cost $4,000 - $7,000 or more per month. Financial
planning experts advise that people in the middle-economic brackets will benefit
the most from long-term care insurance. People with little or no savings may
find the insurance premiums too expensive; if they need long-term care, they
will likely spend their assets to qualify for Medicaid.
People with very large estates and high incomes will generally be able to afford
the monthly cost of long-term care without insurance. However, those in the
middle-economic brackets have too many assets to qualify for Medicaid and too
few assets to pay for long-term care. Long-term care insurance can serve to
protect the estates of middle-income families and help to pay for necessary
care and services.
DISCLAIMER: The information contained in this website is based on Oregon law
and is subject to change. It should be used for general purposes only and should
not be construed as specific legal advice by Fitzwater Meyer, LLP, or its
attorneys. Neither this website nor use of its information creates an attorney-client
relationship. If you have specific legal questions, consult with your own attorney
or call us for an appointment.
(c) Fitzwater Meyer, LLP, 2003-2010
