Long Term Care Podcast
I've mentioned that turning 50 seems to generate a lot of mailings from AARP and numerous insurance companies selling long term care insurance. I keep thinking how health care costs could easily deplete my 401k and 403b savings.
The Sunday Wall Street Journal has an article (and podcast) about a younger couple facing the long term care decision.
They might be right. But insurance is an emotional buy -- you're buying peace of mind -- and here are the facts that shaped our emotions:
• At least half of people over 85 will require help with activities of daily living.
• The costs of long-term care are huge and growing faster than overall inflation. Nursing homes averaged $75,000 a year in 2006; assisted-living facilities, $35,600; in-home care, $19 an hour. Even if those costs rise a mere 3% annually, you're talking nearly a quarter-million dollars a year for care in 40 years.
• Medicare covers very little long-term-care needs; Medicaid does, but you generally must impoverish yourself -- not my idea of a retirement to relish.
• The costs of long-term care are huge and growing faster than overall inflation. Nursing homes averaged $75,000 a year in 2006; assisted-living facilities, $35,600; in-home care, $19 an hour. Even if those costs rise a mere 3% annually, you're talking nearly a quarter-million dollars a year for care in 40 years.
• Medicare covers very little long-term-care needs; Medicaid does, but you generally must impoverish yourself -- not my idea of a retirement to relish.
Wise Owl