Articles
Long Term Care Insrance Myths
October 26, 2000
I don't need long term care insurance because the government will pay.
False.
Medicare is a government welfare program that pays for acute care needs such as hospital stays and physician visits. It only pays for skilled nursing home stays following hospitalization. Medicare also limits help at home primarily to thos ewho need skilled nursing care and rehabilitative therapy.
Medicaid long term care programs primarily pay for the poor and those whoe use up their financial resources. Most Americans pay for long term care out of their own pockets.
I don't need long term care insurance because my family will take care of me.
False.
With the advancements in technology, family members live farther and farther apart. More families are also depending on dual-incomes to maintain their lifestyles.
With 70 million baby boomers reaching old age in the same period of time, family members may not be available, and even if they are, most of us would rather not be a burden to them.
I don't need long term care insurance because I can save on my own.
False.
According to the American Council of Life Insurance, a two-year nursing home stay could cost about $500,000 in forty years' time. Therefore, a 45-year old would have to save about $3,500 per year for 40 years and acheive a 7% annual return, to fund the expense at age 85.
I cannot afford to purchase long term care insurance.
False.
Annual premiums could be less than $500 per year, depending on your age, medical history and the degree of coverage that you seek.
