Long Term Care … how to provide for.

by Michael on May 15, 2009

in Long Term Care,Retirement,Taxes

It is often the case that we feel, should something happen to us where we need long-term care, we will “just stay at home”.

People generally feel that way because of one of two things:

  1. They don’t like the idea of convalescent hospitals with all of the negative connotations the word calls to mind, or
  2. They think it’s less expensive to stay at home.

It is true that some convalescent hospitals are less than desirable, it is also true that some do a very good job of providing a home while attending to special ongoing needs of their patients. They do a good job of giving people a reasonably good quality life. The cost is reasonable when compared to being in a hospital, but still would “break” all but the richest of people over time.

According to a study just released, the average cost is $203 per day, or $74,208 per year. This cost is going up at a somewhat alarming rate of about 4% per year.  However, the cost of staying at home with 24-hour nursing care is about double this. State licensed home health aides average about $18.50 per hour. So this cost is over $400 per day.

This may surprise you: the study also concluded, from raw claims data, that

about 70% of all claims of one well-known insurer were paid out for home-health care.

Regardless of which option you choose, how does a person handle this type of expense?

The key is planning.

In my (nearly) 25 years of helping folks in this area, I’ve seen a lot of changes. I am here to help my clients determine, in a relatively simple process, which avenue open to them – longterm care insurance or some other source of funding – will best serve their needs.

Give me a call or send me an email and I’ll show you how to do this.

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