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Long Term Care Insurance

The Facts.

84% of Americans have had at least some experience with nursing homes — either as a patient or a visitor, and 46% say a family member or close friend has been in a nursing home in the past three years. (Senior Journal, July 2005.)

Medicare generally doesn’t pay for long term care. (www.medicare.gov , 2005.)

48% of today’s workers are not confident in their ability to pay for long term care in retirement. (Retirement Confidence Survey, Employee Benefit Research Institute, 2004.)

By 2030, 20% of all Americans, or about 70 million people, will have passed their 65th birthday. The average 75-year-old has three chronic conditions and uses five prescription drugs. (Executive Summary, The State of Aging and Health in America, Centers for Disease Control, 2004.)

The Risks.

You have a one-in-96 chance of your house being damaged by fire.
Surely your home is covered.

You have a one-in-five chance of your car being damaged in an accident.
You wouldn’t drive without auto insurance.

But you have a 50% chance that you will need long term care at some point in your life.
So why wouldn’t you insure your independence?

(2004 Field Guide, National Underwriter, 2004.)

The Costs.

Two-thirds of single people and one-third of married couples exhaust their funds after just 13 weeks in a nursing home. Within two years, 90% will be bankrupt. (2004 Field Guide, National Underwriter, 2004.)

The average cost per year of nursing home care is $57,700. (Kiplinger’s Retirement Report, March 2004.)

The median cost of care in an assisted living facility is $30,000 per year. (Adult Day Care Services, AARP, February 2004.)

By 2030, the average nursing home stay will cost approximately half a million dollars ($468,960). (Kiplinger’s Retirement Report, March 2004.)

Wendy Boglioli on Long Term Care Insurance