What is Long Term Care?
Long-term care is defined as custodial care when a person requires assistance with Activities of Daily Living (commonly referred to as ADL's) or has significant cognitive impairment.
In order to trigger a long-term care insurance benefit, a person must need help with 2 of 6 defined ADL's : Bathing, Dressing, Eating, Toileting, Transferring, Continence or have a severe cognitive impairment such as that caused by Alzheimer's, Dementia, or Head Injury.
Long-term care is costly and has limited to no coverage under conventional health or disability insurance. Long-term care insurance protects your assets and your family's resources.
The Cost of Long Term Care
If the average cost of long-term care in 2009 is $79,935 and the average stay is 2.4 years1 for a nursing home facility – the total cost of care for a nursing home alone is $191,844 without inflation.
|
Year
|
Projected Cost of 1 Year of Care
|
|
2009
|
$79,935
|
|
2019
|
$124,006
|
|
2029
|
$201,996
|
|
2039
|
$329,021
|
|
2049
|
$535,940
|
Projected Costs Assume a 5% increase in cost per year.
Costs for care increased an average of 5.4% per year from 2004-2007.
How Will Your Employees Pay for Care?
· Retirement Fund?
· Investments?
· Assets?
· Long-term care insurance?
You can help your employees protect their assets by adding long-term care insurance to your benefits package.
1The MetLife Mature Market Institute, The 2009 MetLife Market Survey of Nursing Home, Assisted Living, Adult Day Services, and Home Care Costs
