Americans in Denial Regarding Long-Term Care Planning
Results of a recent survey sponsored by
John Hancock Life Insurance Co. showed,
although 67% of those surveyed believed
they would live to at least age 85, 70% had
not made any plans for their long-term
care (LTC). More than 40% planned to
pay for LTC with savings, although they
had not acquired nearly enough to cover
the associated costs.
"They are in denial – taking a chance they
won't need care – or just ignoring the fact
that they might," commented Laura
Moore, Senior Vice President of John
Hancock's LTC insurance division. Added
Joe Catalano, John Hancock's Vice
President of Distribution, "Many people
think that there is a government safety net
that will catch them, but it's not true."
The national average cost for nursing
home care is $65,700 per year and the
national average cost for assisted living
care is $34,860 per year. With the recent
changes in qualifying for Medicaid
nursing home care resulting from passage
of the Deficit Reduction Act, many are
evaluating whether an investment in longterm
care insurance makes sense.
According to three members of the
Financial Planning Association of Greater
Indiana, if you are considering long-term
care insurance, bear in mind the following:
- Buy when you are younger rather than
older. You will pay for a longer time
period, but because a younger person's
rates are less, in the long run, you will
likely pay less overall. Also, you want to
purchase when you are still in good
health so you can qualify for coverage.
- Buy from a reputable company and
work with a professional who is wellversed
in comparing policies – especially provisions related to waiting
periods, home-care options, and
reinstatement rules.
Source: www.MetLife.com, www.Prudential.com, www.IndyStar.com, 7-9-06 & www.InvestmentNews.com, 7-17-06 |
