McMillion Financial Group
your partner in retirement planning
your partner in retirement planning
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Planning for Long-Term Care Expenses
Failing to plan for the costs associated with long-term care can wreak havoc on your nest egg.
Long-term care insurance can help preserve the assets you've worked so hard to build.
As the baby boomer generation ages, statistics indicate a growing need for long term care. It is
estimated that sixty percent of people who attain age 65 will require long term care at some point
in their lives.
But the need for long-term care is not limited to retirees. Studies reveal that 40% of people
receiving long-term care services are working age adults, between the ages of 18 and 64. Their
need can result from chronic illness, injury or disability.
Many Americans are currently dealing with the
emotional and financial impact of providing for the
long-term care needs of a family member. In home
care is often delivered by a relative who may be
burdened with both child rearing and elder care
responsibilities. And while the services of a home
health aide may be enlisted, the average annual
cost of home care is well over $20,000
for just 25 hours of care per week. By 2030, this
cost is expected to reach $68,000.
Furthermore, the average annual cost of semi-private room in a nursing home is currently
$52,000. By 2030, this figure is projected to skyrocket to $190,600. With the average nursing
home stay estimated at 2.6 years, the total cost will approach nearly a half million dollars!
Will you have saved enough to pay for these types of expenses? And, if you did, would you want to
spend your savings on long-term care?
Unfortunately, some people believe that their health insurance, Medicare or Medicaid will foot the
bill for long-term care. But most health insurance plans normally cover only acute care that is
required for a short period of time. Medicare offers limited benefits for those who receive care in a
skilled nursing facility following a hospital stay. Generally, Medicare recipients are disabled or
have reached full-retirement age as defined by the Social Security Administration. Medicaid is a
government program designed to help those in dire financial need. In most cases, almost all of
your assets and your spouse's assets must be depleted before benefits will be paid, and even
then, Medicaid will not cover most home care, which is the setting most people prefer.
That's why many people seek to protect their assets by purchasing long-term care insurance.
With long-term care coverage, it is possible to defray the expenses of extended care without
placing your income, retirement nest egg and other investments at risk. In addition, long-term
care insurance provides for increased control over your care choices and the peace of mind that
comes with knowing your future needs are covered.
As your Financial Advisor, I can meet with you to help you define your goals, evaluate your
long-term care options an create a plan that services your needs.
Where does the Population Live and Who Cares for Them? LTC: Diverse, Growing Population Includes Millions
of Americans of All Ages," U.S. General Accounting Office 1/01.
MetLife Market Survey of Nursing Home and Home Care Costs; April 2002
"Can Aging Baby Boomers Avoid the Nursing Home?", Stucki, B. and Mulvey, J., American Council of Life
Conning & Company, "Long-Term Care Insurance--Baby Boom or Bust?", 1999, p.15
Failing to plan for the costs associated with long-term care can wreak havoc on your nest egg.
Long-term care insurance can help preserve the assets you've worked so hard to build.
As the baby boomer generation ages, statistics indicate a growing need for long term care. It is
estimated that sixty percent of people who attain age 65 will require long term care at some point
in their lives.
But the need for long-term care is not limited to retirees. Studies reveal that 40% of people
receiving long-term care services are working age adults, between the ages of 18 and 64. Their
need can result from chronic illness, injury or disability.
Many Americans are currently dealing with the
emotional and financial impact of providing for the
long-term care needs of a family member. In home
care is often delivered by a relative who may be
burdened with both child rearing and elder care
responsibilities. And while the services of a home
health aide may be enlisted, the average annual
cost of home care is well over $20,000
for just 25 hours of care per week. By 2030, this
cost is expected to reach $68,000.
Furthermore, the average annual cost of semi-private room in a nursing home is currently
$52,000. By 2030, this figure is projected to skyrocket to $190,600. With the average nursing
home stay estimated at 2.6 years, the total cost will approach nearly a half million dollars!
Will you have saved enough to pay for these types of expenses? And, if you did, would you want to
spend your savings on long-term care?
Unfortunately, some people believe that their health insurance, Medicare or Medicaid will foot the
bill for long-term care. But most health insurance plans normally cover only acute care that is
required for a short period of time. Medicare offers limited benefits for those who receive care in a
skilled nursing facility following a hospital stay. Generally, Medicare recipients are disabled or
have reached full-retirement age as defined by the Social Security Administration. Medicaid is a
government program designed to help those in dire financial need. In most cases, almost all of
your assets and your spouse's assets must be depleted before benefits will be paid, and even
then, Medicaid will not cover most home care, which is the setting most people prefer.
That's why many people seek to protect their assets by purchasing long-term care insurance.
With long-term care coverage, it is possible to defray the expenses of extended care without
placing your income, retirement nest egg and other investments at risk. In addition, long-term
care insurance provides for increased control over your care choices and the peace of mind that
comes with knowing your future needs are covered.
As your Financial Advisor, I can meet with you to help you define your goals, evaluate your
long-term care options an create a plan that services your needs.
Where does the Population Live and Who Cares for Them? LTC: Diverse, Growing Population Includes Millions
of Americans of All Ages," U.S. General Accounting Office 1/01.
MetLife Market Survey of Nursing Home and Home Care Costs; April 2002
"Can Aging Baby Boomers Avoid the Nursing Home?", Stucki, B. and Mulvey, J., American Council of Life
Conning & Company, "Long-Term Care Insurance--Baby Boom or Bust?", 1999, p.15
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Securities offered through NEXT Financial Group, Inc. member FINRA and SIPC 2500 Wilcrest, Suite 620,
Houston TX 77042 (877) 876-6398, www.nextfinancial.com
Before investing in a mutual fund or variable annuity, consider its investment objectives, risks, charges and
expenses carefully.
_______________________________________________________________________________
Copyright 2008 McMillion Financial Group LLC. All rights reserved. Revised May 5, 2008.
______________________________________________________________________________
Houston TX 77042 (877) 876-6398, www.nextfinancial.com
Before investing in a mutual fund or variable annuity, consider its investment objectives, risks, charges and
expenses carefully.
_______________________________________________________________________________
Copyright 2008 McMillion Financial Group LLC. All rights reserved. Revised May 5, 2008.
______________________________________________________________________________
Branch Office: 3022 S National Avenue, Suite 326, Springfield MO 65804
Phone (417) 889-9003 E-mail: kmcmillion@mcmillionfinancialgroup.com
McMillion Financial Group LLC is not an affiliate of Next Financial Group LLC.
Phone (417) 889-9003 E-mail: kmcmillion@mcmillionfinancialgroup.com
McMillion Financial Group LLC is not an affiliate of Next Financial Group LLC.
