How would you pay for long-term care if you needed it? When baby boomers were asked this in a study commissioned by CareQuest, which helps employers set up long-term care packages, only 5% said they would rely on long-term-care insurance. Most said they expected life, health or disability insurance or government programs to cover the costs.
If that's what you're counting on, think again:
- Almost half the population will need long-term care at some point.
- The average length of stay in a nursing home is 2.5 years.
- The average annual cost for a private room at a nursing home is $74,095, according to MetLife Mature Market Institute.
- The average hourly cost of a health aide who gives in-home care is $19. It's double that for a licensed nurse. If you needed round-the-clock care from a nurse, you would have to pay more than $300,000 a year.
- You can't get long-term care insurance once you have a problem that requires long-term care.
Long-term care usually involves nonmedical help with such daily tasks as bathing and dressing. Health, life and disability insurance won't pay for that, nor will medicare. But long-term-care insurance will.
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People who don't have coverage have to pay out-of-pocket until they run out of money and become eligible for medicaid. However, a new law tightens the purse strings of the program that helps families pay for nursing-home care. And that makes owning long-term-care insurance even more of a necessity.
The stories below will show you why you need this insurance, what to look for in a policy and how to find affordable coverage. Plus, you can share your ideas on paying for long-term care.
Qualifying for government-paid nursing-home care has gotten tougher. So be prepared to pay for your own long-term care.
Understanding the New Medicaid Rules
These resources will help you follow developments in your state and learn about other changes in the law.
A Fresh Look at Long-Term Care
Long-term care coverage doesn't come cheap. But with some smart planning, you can buy all the coverage you need at a reasonable price.
Six Steps to Buying a Long-Term Care Policy
Protect your retirement savings from the potentially catastrophic expense of nursing-home care. Learn how to compare policies and purchase the one that is right for you.
Avoid these five blunders people commonly make when trying to cut premium costs.
Lower Your Long-Term Care Costs
Shortening the benefit period can lower your premium significantly while still providing a great deal of protection.
Community: What's the Future for Your Long-term Care?
Will you be able to pay for a nursing-home stay? Would revamping the nation's health-care system pay for more care? Share your questions and solutions with other Kiplinger's readers.