Sign up for Email Updates

Kappel and Apple

  • Health Insurance
  • Life Insurance
  • Long Term Care
  • Wealth Management
Long Term Care

1. What are your odds?
According to the Administration for Aging, 70% of adults over age 65 are likely to need long term care at some point.

2. Cost of Long Term Care
Based on 2008 national averages, a semi-private room in a nursing home costs $68,000 per year. Those costs may escalate, depending on where you live and whether you need additional personal care.

3. Financial Security
It is estimated that two-thirds of all seniors would exhaust their entire savings by paying for just one year of nursing home care. Long term care insurance can protect your retirement savings and other assets in the event of a prolonged stay.
Source “The Distribution of Assets in the Elderly Population Living in the
 Community” by the Kaiser Family Foundation

4. Quality Care
Long term care policyholders receive an average of 14 more hours of personal care per week than those without insurance. The cost of care has been increasing faster than inflation.

5. Rising Costs
Experts predict that long term care costs will continue rising at an annual rate of at least 5%. Consequently, a nursing home that now costs $200 a day will cost $400 a day in 20 years.

6. Facility Choice
If you rely on Medicaid for your long term care coverage, you’re limited to Medicare-sponsored institutions in selecting where you’ll receive care. Most of these institutions are nursing homes. A long term care policy gives you the freedom to choose your facility or to opt for at home care.

7. Medicare and Medicaid
Many people incorrectly think that Medicare covers extended long term care. In fact, Medicare pays for skilled care in a nursing home only for short periods (up to 100 days). Medicaid only covers long term care for people with very low assets and limited income.

8. Average Nursing Home Stay
20% of nursing home stays last three months to a year, 34% last 1 to 5 years and 19% are prolonged for more than five years.

9. Other Insurance
Many people incorrectly believe that their HMO, health or long-term disability insurance will pay for their long-term care. The truth is, however, that only long term care insurance covers day-to-day personal care assistance.

10. When should I start considering Long Term Care Insurance?
In 2007, the average purchaser of a long term care policy was 57 years old. The younger and healthier you are, the lower your premiums will be.
Source The 2008 LTCi Sourcebook

Copyright © Kappel & Apple. All rights reserved.