Long-Term Care

WHAT WILL IT COST ME? WAYS TO PAY FOR IT Here are $205 $229 some options: Medicaid: To qualify, your income S has to be low enough to meet the requirements of the state you live in. LONG-TERM CARE $3,293 •$21 $19 $67 Personal savings: Long-term care can quickly exceed personal savings for most of us. It's Coming. Are you ready? Long-term care insurance: Premiums vary by your age at the time you buy the policy, coverage, and policy type per day/$6,235 per month for semi-private per day/$6,965 per month for private room in nursing home Reverse mortgage: This is a type of home equity loan for people 62+ where you can receive cash against the value of your home without selling the home. per month for a 1-bedroom unit in an per hour for a home per day for services in adult per hour for Most Americans aren't even thinking about it, but the numbers say we should be. Here are the facts on actual costs, care options and tips to help you prepare now for this likely and expensive need. homemaker assisted-care facility health aide services day-care center room in a nursing home THE MOST AND LEAST EXPENSIVE STATES WILL YOUR FAMILY PAY A PRICE? 70% of people turning age 65 can expect to use some form of long- term care during their lives. Alaska CAnnual costs: Missouri CAnnual costs: WHO WILL NEED IT? One in four U.S. adults were unpaid caregivers to Adult day care: Adult day care: an adult or child in 2009. $29,396 $18,200 Licensed home care: Licensed MOST LEAST A reported 37% of caregivers quit their jobs or reduced work hours to care for someone 50+ home care: $56,056 $38,896 Private room in nursing home: Private room in nursing home: in 2007. These lost wages and benefits add to personal long-term care costs. For people with diabetes, high blood $255,891 $58,035 Those who live alone 69% of people 8% of people 40-50 have a disability that could require long- are more likely to need paid care than people who live with family or friends. 90+ have a pressure or other chronic disease, the chances are greater. disability. term care later in life. WHAT ARE THE MAIN THINGS TO CONSIDER IN CHOOSING WHERE TO LIVE? THE 411 ON LONG-TERM CARE INSURANCE WHY DON'T AMERICANS PLAN? Best time to buy: It costs less when you are younger. If you're healthy, it's easier to get and you could get a discount. You'll have better luck in your 50s than if you wait. The average policy in 2007: The condition of your home. How "aging-friendly" Cost about Buy coverage for a set number of years vs. lifetime. On average, Americans actually your community is – does it offer public transportation or elder shuttles, Meals on Find out if you can get it through your employer. $2,207/YEAR 100 80 Covered 4.8 years of benefits (excludes the 20% of policies with lifetime coverage) Whether it can be 60 Wheels and other modified, if necessary, to maximize self-care Choose a policy with the longest wait period you can afford (time between needing services and when coverage kicks in). need long-term care needed services? 40 services for three years. 28 33 45% 20 and help avoid a fall. The availability and affordability of rental and public housing in your area. Had a daily benefit of Comparison shop. Ask insurance reps about recent premium increases. $160 28% say the cost of care prevents them from planning. Fewer than 1/3 are currently saving for it. The availability of long-term care services in your area, Included automatic Get a two-fer. Check into Be aware that insurers Almost half are unsure how. a joint policy that will pay if usually reserve the right inflation protection such as adult day care or Tax and legal issues. you or your spouse needs care, to increase them, nearby medical facilities. longtermcare.gov SOURCES: longtermcare.gov | www.fa-mag.com/fa-news/9046-most-americans-dont-prepare-for-long-term-care-planning-survey-says.html | www.genworth.com/corporate/about-genworth/industry-expertise/cost-of-care.html | AARP Public Policy Institute 2008: Valuing the Invaluable: The Economic Value of Family Caregiving | Medicare: http://www.medicare.gov/longtermcare/static/home.asp