For the 70 percent of people older than 65 who the experts say will need long-term care at some point in their lives the costs just notched up again. According to the Genworth 2017 Cost of Care Survey released today, the annual median cost of long-term care services increased an average of 4.5 percent from 2016 to 2017, the second-highest year-over-year increase for nursing homes and home care since the study began in 2004 and nearly three times the 1.7 percent U.S. rate of inflation.
What is Long-Term Care Insurance?
Unlike traditional health insurance, long-term care insurance is designed to cover long-term services and supports, including personal and custodial care in a variety of settings such as your home, a community organization, or other facilities.
Long-term care insurance policies reimburse policyholders a daily amount (up to a pre-selected limit) for services to assist them with activities of daily living such as bathing, dressing, or eating. You can select a range of care options and benefits that allow you to get the services you need, where you need them.
Roughly 1.4 million Americans are living in nursing homes today. Nursing home care is costly ranging from $10,000 to $15,000 a month when paid for privately. And did you know, Medicare DOES NOT pay for ‘long-term’ nursing home care. Another good reason long-term care insurance should be part of your financial plan. The phrase “long-term care” refers to the help that people with chronic illnesses, disabilities or other conditions need on a daily basis over an extended period of time. (CONTINUE ARTICLE)