Making Long Term Care News Part of Your Breakfast
Most people have the habit of reading the newspaper over breakfast but only a few would go from cover to cover. Average readers would normally browse through current events, business reports are digested by entrepreneurs, lifestyle articles are for socialites, and long term care news are read by health enthusiasts and those who do not want to grow old miserable and impoverished.
Long term care (LTC) is not a topic which should be taken for granted especially in this time and age as the cost of care increases each year. People who follow reports on the cost of care in the country understand that their income and nest egg won’t be enough to cover the cost of a nursing home, an assisted living facility, or even in-home care. Families with loved ones in nursing homes are currently spending $77,745 annually so if your mother or father would wind up needing five years of care in this type of LTC facility can you confidently say that you can afford to pay out close to $400,000?
Perhaps if you have an annual income of $500,000 you will be able to pay your mother or father’s five-year stay in a nursing home. However, that’s only taking into consideration the current cost of care. Suppose LTC costs double next year and a five-year stay in a nursing home would be equivalent to $800,000 can you still say that you can pay for it out-of-pocket?
If you are an average American who has to keep his eight-to-five job in order to maintain a decent lifestyle, do not try to self-insure as the cost of care is unpredictable. Heed the advice of financial planners and experts on the field of LTC.
Long Term Care News
According to the latest LTC news it’s not only the cost of care that is increasing rapidly but the premium rates of long term care insurance (LTCI), as well. Research shows that so many existing policies were priced too low so insurance companies are now having a hard time covering claims and thus explaining the premium hike of a number of policies.
From $2,400, a 65-year-old policyholder can expect to pay $2,570 to $3,000. For someone who has been paying a fixed premium rate for more than 20 years this would seem unbelievable. However, if he would look at it from a logical standpoint this four-figure premium amount is still more tolerable than paying $77,745 for a year’s stay in a nursing home or $38,000 for a year of in-home care.
Insurance companies have their reasons for imposing a premium hike, which are more acceptable than the reasons behind the soaring rates of LTC facilities. In order to fully understand those reasons take some time off from your busy schedule to read about LTC.
It’s about time that you acknowledge LTC is no longer optional as this generation is expected to live longer than the previous ones. Everyone, at some point in his life, will require a certain level of care which will cost a lot of money. While you are still physically strong and mentally fit, pay attention to long term care news for this will prepare you and your family for the future.
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