Americans are living longer. The life expectancy of a newborn American male was 46.3 years in 1900, according to National Center for Health Statistics. Today, it’s 75.3 years, which is why long-term care insurance continues to grow in importance.
The American Association of Long-Term Care Insurance (AALTCI) and the U.S. Congress hope to make more people aware of the risks and costs associated with long-term care. Here are some national average cost figures:
- $85,775/year for a private room in a nursing home,
- $75,555/year for a semi-private room in a nursing home and
- $39,240/year for an assisted living facility.
- $20/hour for at-home care.
Source: 2011 Johns Hancock Financial Cost of Care Survey conducted by LifePlans
AALTCI urges Americans to buy LTC insurance before age 65 to avoid the high costs associated with waiting. Factors that affect the cost of LTC protection include your age and health.
- Good health could help secure discounts that may not change even if your health does in the future.
I recommend taking some steps that can help protect you against the financial risks associated with long-term care. This involves putting together a retirement plan that includes planning ahead for long-term care expenses. Call our office today to create or review your retirement plan and discuss the importance of planning for long-term care.
