Long term care insurance addresses the financial burden often faced by those seeking assisted living or nursing care.
Did you know?
- Semi-private room in a Nursing Home was $98,185 a year ($269 a day).
- The average cost for an Assisted Living Facility was $41,328 a year ($115 a day).
- Home Health Care averages $46,368 a year ($193 a day).
A two or three year stay in a nursing home or assisted living facility could easily deplete much of the savings that a family has set aside for retirement or to pass on to their children. If you require assisted living or nursing care services for 5 years or more, your care costs could exceed $500,000. Purchasing a long term care plan is an economical way to finance this high cost.
Consider the diagram below:
If you wanted to simply save money to pay for long term care later, you would have to save $15,000 a year for 25 years (assuming a 3% interest rate) to match the $600,000 insurance pool.
Buying long term care insurance is an excellent, forward-thinking option that can be often be obtained for a relatively low cost.