Long Term Care Insurance Is Too Expensive

Long Term Care Insurance is too expensive. The third myth of Long Term Care is that the insurance is not affordable. The truth is that Long Term Care is not affordable.

According to Genworth Financial's Cost of Care Survey published in March of 2006 the following were the national averages for Long Term Care costs:

• $18 per hour (or $180 per 10-hour shift) for home health aide


• $62 per day (or $22,500 per year) for adult day care


• $2,900 per month (or $34,000 per year) for assisted living


• $170 per day (or $62,000 per year) for a semi-private room in a nursing home


• $194 per day (or $70,000 per year) for a private room in a nursing home

A similar picture is painted in Genworth Financial's Cost of Care Survey published in April of 2008. The following are the average Long Term Care costs in South Carolina:

• $17 per hour (or $170 per 10-hour shift) for home health aide


• $2,669 per month (or $32,028 per year) for assisted living


• $149 per day (or $54,385 per year) for a semi-private room in a nursing home


• $158 per day (or $57,670 per year) for a private room in a nursing home

So who is paying these costs? According to Centers for Medicare and Medicaid Services 2004 Statistics published in January of 2006, only 9% is paid by private insurance and 22% is paid out of pocket. Why would someone pay for Long Term Care out of pocket when they could insure against its costs? Some people do not realize that there is Long Term Care Insurance. Others wait until they need the coverage but no longer qualify medically. Some folks mistakenly believe that they already have coverage through Medicare, their health plan, or their disability insurance.

Of course, a few acknowledge the risk and expense and are trying to save or invest to meet their anticipated Long Term Care costs. However, consider that according to American Council of Life Insurance projections published in June of 2003 although the average nursing home cost was $54,998.20 per year in 2003, it will rise to more than $200,000 per year by 2030. Some experts predict that baby boomers should expect to spend between $750,000 & $1,250,000 for 3 to 5 years of Long Term Care 30 years down the road.

The question is even if you could save the money to pay for Long Term Care costs, is that really want you want to do with the assets you have accumulated over a lifetime when you could instead insure against the same risk for pennies on the dollar? This is the reason why many who have the wealth to pay for their own Long Term Care costs purchase Long Term Care Insurance. The wealthy understand that one increases wealth by spending as little of their own money as possible while still avoiding likely or costly risks.

In the end you have to ask yourself, "Can I afford not to invest in Long Term Care Insurance?" Some companies have made it easier, too, by offering discounted rates for those who are married or those willing to pay annually. Additionally, many companies are now offering plans that allow you to select the level of coverage you desire or can afford. Let's face it, even if you can only afford to protect half your assets, then you are still protecting half your assets!