The insurance business is something that I've been working in for more than a decade now and I have listened to a lot of peoples explanations on why they avoid buying insurance coverage. Most of the challenge comes from long held ideas which people look at to be true, while others are entirely false. It appears that most scenarios, for which we need insurance unless required by law, provide us an "option". Nevertheless, knowledge really is our finest educator and Long Term Care Insurance is no exemption. Any person who has experienced care for the elderly understands, with no doubt, just how significant this protection can be.
These are the four myths which guide people to think that they will never need this essential coverage.
1. My loved ones will take care of me, so I really don't need Long Term Care!
This is a really common belief and one that I have seen over and over again. In the 1950's when grandma required a place to live she usually journeyed amongst her kids. Nowadays; things are a little bit different. People are now having fewer children with the outcome being that the obligation for parental care may turn out to be the job of only one or two siblings supposing they are accessible AND have the time and money to take care of grandma. There's an old quote, "One mother can take care of ten children, but ten children can't take care of one mother?" This just goes to show that probably moving grandma around in the 1950's didn't work and it absolutely doesn't work nowadays. Include the fact that in many households where both spouses work, marriages frequently end in divorce and seniors are living for a longer time than they ever have. I absolutely don't want to live long enough to turn out to be a problem for my children.
2. When I'm old, Medicare will pay for whatever I need! Right?
Medicare was never created to pay for Long Term care expenses. Quoting the Medicare website, "Medicare doesn't pay for help with activities of daily living or other care which people can do themselves. Medicare will only pay for skilled nursing or home health care if one meets certain specific criteria. "
3. If I can't find the money, than Medicaid will pay for what I need! Right??!!
This is completely accurate! BUT! In order for a person to be eligible for Medicaid they need to first meet really strict guidelines with respect to assets. Simply put, they need to confirm that they are indigent. Furthermore, if there is a partner involved, any assets relocated from one to another are subject to a five year look back. For that reason, if you have assets including a house, a vehicle, or a 401K, this will provide some very huge problems needing the service of elder care professionals such as lawyers and planners and need to be done prior to the problem occurring. Even if you are eligible for a Medicaid price cut, your family may continue to wind up paying in over half the amount of your monthly rent at a experienced medical center. Are you informed that in some urban locations monthly nursing home expenses are between $10K and $15K per month?
4. I can take care of myself! I saved up enough money!
Sure, you can pay your long term care bills from your own savings account. Having said that, you need to think about the cost of long term care providers before depending on "private pay" as a strategy of financing care. Here are the latest national costs for long term care companies:
• $20/hour for a home health assistant
• $61/day for care in an adult day care facility
• $3,270/month for care in an assisted living facility
• $207/day for a semiprivate room in a nursing home
• $235/day for a private room in a nursing home
In 2011, the "average" value of a semiprivate bedroom in a nursing household, nationwide, was $75,555. In respect to the U.S dept of Health and Human Services, the typical period of stay in a nursing home is 2.4 years. Are you regimented enough to conserve this type of money? Is this where you want your savings to go if you are competent of such discipline?
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