Fi​ve Rings Financial - Arizona


Long Term Care

The Facts.
[LTCS] 84% of Americans have had at least some experience with nursing homes -- either as a patient or a visitor, and 46% say a family member or close friend has been in a nursing home in the past three years.  ( Senior Journal, July 2005.)

Medicare generally doesn't pay for long term care.  ( , 2005.)

48% of today's workers are not confident in their ability to pay for long term care in retirement.  ( Retirement Confidence Survey, Employee Benefit Research Institute, 2004.)

By 2030, 20% of all Americans, or about 70 million people, will have passed their 65th birthday.  The average 75-year-old has three chronic conditions and uses five prescription drugs.  (Executive Summary, The State of Aging and Health in America, Centers for Disease Control, 2004.)

The Risks.
You have a one-in-96 chance of your house being damaged by fire.
Surely your home is covered.

You have a one-in-five chance of your car being damaged in an accident.
You wouldn't drive without auto insurance.

But you have a 50% chance that you will need long term care at some point in your life.
So why wouldn't you insure your independence?
( 2004 Field Guide, National Underwriter, 2004.)

The Costs.
Two-thirds of single people and one-third of married couples exhaust their funds after just 13 weeks in a nursing home.  Within two years, 90% will be bankrupt.  (2004 Field Guide, National Underwriter, 2004.)

The average cost per year of nursing home care is $57,700.  ( Kiplinger's Retirement Report, March 2004.)

The median cost of care in an assisted living facility is $30,000 per year.  ( Adult Day Care Services, AARP, February 2004.)

By 2030, the average nursing home stay will cost approximately half a million dollars ($468,960).  ( Kiplinger's Retirement Report, March 2004.) 

Means that someone has been certified by a licensed health care practitioner as being unable to perform 2 out of 6 activities of daily living or is cognitively impaired.  The 6 Activities of Daily Living are:

  1. Bathing
  2. Continence
  3. Dressing
  4. Eating
  5. Toileting
  6. Transferring