The New Old Age blog:
Answers on Long Term Care Insurance.
Some excerpts
Q. I have heard general advice that for couples with net worth of over $1.5 million, long-term care insurance is not necessary from a probabilities standpoint. Do you agree with this advice and if not, is there a net worth point where you feel long-term care insurance is not a priority? — Mark Little
A. We need to start with understanding the risk. Recent research indicates that 69 percent of those turning 65 in 2005 can expect to use long-term care. Of those who do, 37 percent will require facility care.
The average facility stay is about two and a half years, or about 30 months. A 2007 MetLife survey provided the average cost for a semi-private room in a nursing home. Nursing homes in the New York City area average $340 a day, which means an average stay in the NYC area today could cost over $310,000.
The question to ask is: Could you handle this cost if something were to happen today? What about tomorrow? LTC expenses are anticipated to increase by around 5 percent each year. Assuming you and your spouse are 60, at the rate of 5 percent inflation per year the price will be over $600,000 by the time you reach age 75, assuming just one of you needs care. Read more …
Q. What are the preferred specifications for a long-term health insurance coverage to supplement Medicare or a HMO policy? My husband and I are 64, in good health, and are not sure whether we should obtain such a policy at this time. — Maurine Greenwald
A. It is important to understand that Medicare and Medicare supplemental insurance do not cover extended long-term care. You should meet with an attorney to review your overall estate plan for your retirement years. For a directory of elder law attorneys, go to the National Academy of Elder Law Attorneys, which has more than 4,000 members.
newoldage.blogs.nytimes.com/2008/07/18/answers-on-long-term-care-insurance/index.html
