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 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 cost of long term care in 2007 is $70,810 and the average stay is 2.4 years1 for a nursing home facility – the total cost of care for a nursing home alone is $169,944 without inflation.
|
Year
|
Projected Cost of 1 Year of Care
|
|
2006
|
$62,415
|
|
2016
|
$96,743
|
|
2026
|
$149,796
|
|
2036
|
$232,184
|
|
2046
|
$360,135
|
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.
1US Department of Health and Human Services:
http://www.longtermcare.gov/LTC/Main_Site/ Paying_LTC/Costs_Of_Care/Costs_Of_Care.aspx
