What is Long-Term Care?

Someone with a prolonged physical illness, a disability, or a cognitive impairment (such as Alzheimer’s disease often needs long-term care.

How much does Long-Term Care Cost?

Long-Term Care can be expensive. The cost depends on the amount and type of care you and where you get it. National average annual costs in 2001 are quoted below:

Home Health costs: range was from $12,000 to $16,000 per year . Costs vary based on the number of days per week the caregiver visits, the type of care required and the length of each visit.

Assisted Living Facility costs: average reported at $1873 per month, or $22,476 per year. Some residents may pay a lot more if their needs are higher.

Nursing Home costs: In 2001, the national average was $56,000 per year, or about $153 per day. This cost does not include items such as therapies and medications, which make the cost much higher.

Do you need Long-Term Care Insurance?

Whether you should buy a long-term care insurance policy will depend. Health status, your financial goals, income and assets are important factors. Seniors report that independence and not wanting to burden anyone are very important in their desire to seek insurance coverage. Also, the desire to pass on life-long assets to the next generations is a compelling desire to insure against this financial risk.

You should consider buying Long-Term Care Insurance if:

 •  You want to stay independent of the support of others
 •  You want to have the flexibility of choosing care in the setting you prefer
 •  You want to protect some of your assets and income.
 •  You can pay premiums without financial difficulty

HealthWise has the experience to guide you through this process.
We are also encouraged that there is a new initiative by the State of South Dakota (S.D. Long-Term Care Partnership Program) which is an exciting development intended to give a financial incentive to this key instrument of keeping family assets intact.

Information from Dean Henzlik is available.