Living assistance is something that you should take into consideration if you are looking ahead toward your senior years, and long term care insurance can provide you with protection. Unfortunately, many people do not think about the subject for three different reasons, but these individuals are working under false assumptions.
First, there is the idea that it is unlikely that you will even need help with your activities of daily living. This is a falsehood. According to the United States Department of Health and Human Services, 7 out of every 10 seniors will need living assistance eventually.
The second mistaken perspective that many people adopt is the idea that Medicare will pay for long term care if it is ever required, so long term care insurance is not necessary. It is true that you will qualify for Medicare coverage under existing laws when you reach the age of 65 if you have paid into the program sufficiently. The program will pay for convalescent care or rehabilitative care after an injury or illness, but it will not pay for custodial care. A stay in a nursing home or assisted living community would be looked upon as custodial care.
Lastly, there are those who think that it would be easy to pay for long term care out of pocket if they ever need it, so they see no reason to purchase long term care insurance. This is another misguided notion unless you have very deep pockets.
Genworth Financial does a lot of research into the current state of long-term care costs in the United States, and they update their figures annually. Our insurance agency provides long term care insurance to people in the state of Illinois for the most part, though we do have some clients who are just across the border in Iowa. According to the survey that looked at costs in 2016, the median annual charge for a private room in a nursing home in the state of Illinois was $6235 a month.
If you were to surrender some privacy and accept a semi-private room, the savings would not be a game changer. The median monthly cost for a semi-private room was $5597. If you do the math and multiply these figures by the 12 months in a year, you are looking at an annual cost of between $67,000 and $75,000.
Some people can continue to live with a good bit of independence without the need for regular medical attention. These seniors often reside in assisted living communities. Genworth tells us that the median monthly charge for a one bedroom unit in an assisted living facility in the state of Illinois in 2016 was $3898 per month or $46,776 per year.
Now Is the Time to Take Action!
When you absorb this information, you can see why it is important to plan ahead to brace yourself for potential assisted living costs. As we have stated in the opening, we satisfy the needs of people who need long term care insurance in Macomb, Oquawka, Aledo, Roseville, and Stronghurst, IL along with Burlington, IA, so help is nearby. If you would like to speak with one of our knowledgeable agents, we can be reached by phone right now at 800-967-6534.