How Much do I Need for My Long Term Care?

[thomaslee]

I am nearing my 60's and looking for a long term care policy. I don't have any ideas on how much I will need for a policy to cover my cost of care in the future. Is there some way to compute this?

[valeriesmith]

This makes long term care planning essential. If you want your insurance to cover all potential long term care insurance cost then you should select a benefit that will keep pace with the inflation as you get older.

By following this step your long term care insurance policy should be up to date and there will be sufficient funds available for care whenever it is needed in the future.

[StarbuckSammy]

A monthly estimate for long term nursing home care is about $9,000. Subtract from that amount of your social security, pension and a percentage of assets you may have and the result is your estimated shortfall. It is actually more complicated because you have to figure how long you will live and how long your assets, if any will last. The most important item is to know you are looking at $9,000 a month in care costs...today!
Just think if you and your spouse enter the nursing home at the same time...$18,000 per month. OUCH!

[Lbmb24101]

I read once that if one has over 2 million in liquid assets, long term care ins might not be needed.
I also read that the average stay in such facilityis between 3-5 yrs
I got this insurance thru my employer when I was in my late 40's with the inflation provision in it, of course.
But you can go all out ( and pay thru the roof in premiums), bc there all all kinds of coverage and varieties of long term care insurance.
But it is, in my opinion, a very good thing to have and not need it, than the reverse.
My former employer used the company CNA and that is the insurance i still carry.
My advise:
Do this now bc once you fall ill, no insurance will accept you, no matter how much you pay. This has happened to my husband.

[gomoho]

My mother is in a memory care facility that is absolutely lovely and only a few years old in Oxford. Her care is $5050 a month. She started in assisted living in 05 and was paying around $2900. When she left assisted living last year she was around $4500. So I guess the point I am making is the $9000 number I've heard might be high, but at the same time you can see how the costs have gone up in just 8 years.

[jane032657]

My mother is in a memory care facility that is absolutely lovely and only a few years old in Oxford. Her care is $5050 a month. She started in assisted living in 05 and was paying around $2900. When she left assisted living last year she was around $4500. So I guess the point I am making is the $9000 number I've heard might be high, but at the same time you can see how the costs have gone up in just 8 years.

The costs go up about 5% a year in assisted living, as a general rule. What gets more expensive is the personal care. As you age, or have increasing care needs the costs become prohibitive unless you have savings or long term care. Long term care kicks in when you have a need for assistance with bathing, dressing, grooming, toileting, eating-Activities of Daily Living as they are called, and you need at least two of those, maybe three depending on your insurance, in order for it to kick in. Add in mobility and transfer needs, and memory loss, and you are at the top of the list of costs.

I would suggest, if you have social security and other benefits, and could afford about $3,000 a month of your own personal income, that you get a long term care policy that would give you about $6000-$6500 a month assistance at todays rates; with an annual increase in the benefit. You should also look at a policy that allows you to hire someone to live in and care for you, or come in to care for you, at areduced rate of benefit so you have choices.

I do not sell long term care. I am a licensed Assisted Living Administrator, Retired.

[mgjim]

Here's a link to a useful pamphlet published by Met Life that should be helpful in planning for your long term care needs:

https://www.metlife.com/assets/cao/mmi/publications/studies/2012/studies/mmi-2012-market-survey-long-term-care-costs.pdf

[marianne237]

Thank you to all who answered. Gives us all something to think about.

[asianthree]

my inlaw cost per month was $4800..for a small facilty...but the care was great and clean

[Villages PL]

Few seniors have long term care insurance and this segment of the insurance business is not doing very well, at last report. One major insurance company got out of this business and another, John Hancock, asked for large premium increases. I believe the reason might be that there are too few insured seniors to spread the risk. It's just a bad deal all the way around.

My solution: Live a healthy lifestyle (don't take your health for granted) while saving as much money as you can, just in case.

[jblum315]

One of the main reasons to have long term health insurance is to preserve assets for your heirs. If you don't have children or if you don't think they will need the money, then less reason to pay premiums. Just hope you will outlive your savings!

[asianthree]

we bought our long term care years ago...problem is its only good up north never thought about that when we bought it thru work

[StarbuckSammy]

As I indicated in my previous post, I estimated skilled nursing care at $9,000 per month. According to the Met pamphlet provided by a poster, Pittsburgh for a nursing home private room averages at $328 per day or $9,840 per month. Long term private pay nursing home is almost cost prohibitive. Don't get skilled nursing home care confused with assisted living care.