Question: Should I consider long term care insurance as a viable option to address my potential future nursing home costs?
Answer: According to the 2017 Genworth Cost of Care Survey, the median cost of adult day health care in the U.S. is $1,500 a month. Moreover, it’s roughly $3,750 for an assisted living facility, $4,000 for home care services and $4,100 for home health aides. And the median cost rises to $7,000 for a semiprivate room at a nursing home and $8,000 for a private room (these costs can be much higher depending on your metropolitan region).
Medicaid isn’t a viable option for most people because of the relatively low state income thresholds. One alternative is to obtain long-term care (LTC) insurance but I have found that the decision to buy LTC insurance isn’t as easy as it may at first seem.
LTC policies can vary widely depending on such factors as the insurer, area of the country, and your health status. Policies vary in terms of benefits provided and length of payout. Also, the policies will increase in cost with the rise in age.
It is best to speak to an insurance specialist who can navigate the pros and cons of long term care insurance.
As always, if you have any questions or would like to learn more, please contact Steve Shane at firstname.lastname@example.org or .
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Steve Shane provides strategic counseling to clients in need of estate administration, charitable giving and business continuity planning while minimizing estate, gift, and generation-skipping transfer tax exposure. He offers legal guidance to clients on asset protection and the proper disposition of assets in accordance with the client’s objectives, while employing tax planning techniques such as the use of irrevocable trusts, life insurance planning, lifetime gifts and charitable trust. He is also experienced with drafting documents for business planning, the incorporation and application for exemption for Private Foundations and the administration of decedents’ estates.
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