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Why is there a need for long-term care insurance?
Americans are living longer and you may need long-term care. Male life expectancy is 80. Female life expectancy is 82. (National Vital Statistics Report, Vol. 47, No. 9, November 10, 1998)
Families are smaller and more fragmented, and therefore less likely to care for an extended family.
Provide yourself with a choice of care and facilities.
Avoid depleting your assets in order to meet Medicaid requirements.
A 60-month lookback period applies to transfer of assets when applying for Medicaid. (The Deficit Reduction Omnibus Reconciliation Act of 2005)
One years' cost in a nursing home will likely far exceed the total cost of your paid premiums.
There are now 33 million people in the United States age 65 or older. (U.S. Dept. of Labor, Women's Bureau, May 1998)
Trends affecting long-term care insurance.
Forty-three percent (43%) of Americans over age 65 as of 1990 will enter a nursing home at some time during their life. (The New England Journal of Medicine, February 28, 1991)
1 out of 3 men and 1 out of 2 women, age 65 or older, will live in a nursing home before they die. (Fortune Magazine, 10/21/91; U.S. News and World Report, 4/26/93; Newsweek, 10/24/94)
The average length of stay in a nursing home is 2.5 years. (U.S. Department of Health and Human Services)
The average length of stay in a long-term care facility for someone with Alzheimer's Disease is 8 years. (Facts from The Alzheimer's Association, LTC News & Comment, 2/97)
Medicare pays only about six percent (6%) of all nursing home costs nationwide. (Home Care Financing, Spring 1996)
The average cost of a nursing home in New York State is $99,645 per year ($273 per day). (New York State Partnership for Long-Term Care, 2005)
Options to consider when choosing a policy to meet your needs.*
New York State Partnership Approved Plan
Financially Stable Insurance Company - As rated by Standard & Poors, Moody's, AM Best.
No Prior Hospitalization
Well-Defined Benefit Triggers
No Skilled Care Requirement
Home Health Care Provision - None, 50%, 75% or 100% of nursing home benefit.
Waiver of Premium
Covers Alzheimer's Disease
Length of Benefit - 2, 3, 4, 5, 6, 10 years or lifetime benefit.
Daily Benefit Amount - Maximum $500 per day or $15,000 per month.
Elimination Period - 20, 30, 60, 90, 100 or 180 days.
Inflation Protection - None, guaranteed purchase option, 5% simple or 5% compound.
Potential advantages of individual (and "group-sponsored") policies over corporate group policies.*
Preferred health discounts up to 15%.
Married discounts up to 20%.
Premium discounts up to 8%, per policy, for paying annually versus monthly.
Option of selecting New York State Partnership Plan.
Independent choice of insurance companies and policy options based on individual needs.
Choice of home health care benefits.
Wide range of choice in length of benefit.
Choice of daily or monthly benefit with higher maximum amount.
Wide range of choice in elimination period.
Three different types of inflation protection.
Choice of optional benefit riders.
Availability of limited pay option.
Additional benefits commonly available in individual policies.*
Bed hold reservation.
Respite care for caregiver.
International coverage (non-partnership plans).
Home modification coverage.
Shared-care benefit with spouse, optional rider.
Survivor benefits, optional rider.
Nonforfeiture, optional rider.
Home health care with no elimination period, optional rider.
* Availability of benefits and optional riders is dependent upon policy selected and age at time of purchase.
Long-Term Care Insurance: Get The Facts Q&A