By: Stanley Fevrier of New York Life
Much conflicting and mistaken information about long term care appears in newspapers and magazines, and on TV. These myths may have prevented you from considering long term care planning in your retirement plan. Now is the time to dispel these myths so that you can make informed decisions about long term care.
<BR><BR>Myth #1: I'll never need long-term care.
<BR><BR>Fact #1: People age 65 face a 40% risk of entering a nursing home at some point according to the U.S. Department of Health and Human Services [1]. Doesn't it make financial sense to insure against what that risk may do to your family?
<BR><BR>Myth #2: Long-term care is only for the elderly.
<BR><BR>Truth #2: Actually, a surprising amount of long-term care services are provided to younger people. The U.S. Government Accountability Office estimates that 40% of 13 million people receiving long-term care services are between the ages 18 and 64[2]. The unexpected need for long-term care could arise at any age for any number of reasons, including illness, or an accident.
<BR><BR>Misconception #3: I have the resources to afford long term care.
<BR><BR>In 2008, nursing home costs averaged over $76,400 a year nationally, but in some regions these costs are sometimes twice that amount[3]. How long can you pay for these expenses without jeopardizing your financial plan or exhausting your savings? It may make good sense to transfer this financial risk just like you do with your homeowner's insurance or auto insurance. Even if you can afford to pay for long-term care services out of pocket, why would you want to when you can transfer the cost to an insurer for premiums that may total a fraction of the cost of care?
<BR><BR>Misconception: I have Medicare to provide for those expenses.
<BR><BR>Medicare does pay for nursing home care, but only for a maximum of 100 days and if the 3-day qualifying hospital stay requirement has been met. In addition, Medicare will only pay as long as you are showing progress towards recovery. Once your condition becomes stable, even if you are not fully well or back to a completely healthy state of being, Medicare rules indicate that benefits will stop. Also, Medicare does not pay for individuals to attend an adult day care or for the room & board expenses at an assisted living facility.
<BR><BR>Mistake #5: Medicaid will make up the difference when Medicare coverage ends.
<BR><BR>Fact: Medicaid is the largest payer of nursing home costs and helps those with limited financial resources, but, qualification for Medicaid means spending all your money, or nearly so
<BR><BR>A long life needs long term planning. Start today by contacting Stanley Fevrier, Agent, New York Life Insurance Company at 339-5328242. www.sfevrier.com
<BR><BR>The purpose of this piece is solicitation of insurance. An insurance producer (agent) may contact you. New York Life Insurance Company long-term care insurance is issued on policy form series ILTC-5000 and INH-5000 with a state identifier and edition date. Example: Examples: for Idaho ILTC-5000 (ID) (1001) and INH-5000 (ID) (1001) and for North Carolina ILTC-5000 (NC) (1001) (Rev. 0606) and INH-5000 (NC) (1001) (Rev. 0606) and for Pennsylvania ILTC-5000 (PA) (1001), FLTC-5000 MLP (PA) (0503), for Tennessee ILTC-5000 (TN) (1001) and INH-5000 (TN) (1001) and for Texas ILTC-5000 (TX) (0305) and INH-5000 (TX) (0305). New York Life Insurance Company, 51 Madison Avenue, New York, NY 10010.
<BR><BR>[1] Health Insurance Association of America. A Guide to Long-Term Care Insurance. 2007. Page 3.
<BR><BR>[2] Health Insurance Association of America. A Guide to Long-Term Care Insurance. 2007. Page 3.
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Bio:
About the author: Stanley Fevrier is the leading insurance sales agent for NY Life in southern New England.For more information on <a href="http://www.sfevrier.com">Planning for Long Term care</a>
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