Recent statistics clearly show that in the average nursing home, women residents outnumber men by three to four. Why is this? The answer is simple, women live longer than men. As a result of living longer, and without someone at home to provide simple care, women are most vulnerable to enter a nursing home. Add frailness to the formula, and a simple slip and fall, the world suddenly takes a turn for the worse.
With the high risk, comes a high cost. On average, nursing homes in Wisconsin charge $6,500 per month for typical nursing home care. With the average stay lasting 36 months, the total cost can easily reach $250,000. For those with Alzheimer’s and dementia, the stay will be much longer, and the total cost will exceed $400,000.
Are most women prepared to pay for the nursing home? The answer is, “no”. Unless she has a large monthly income and substantial savings, the task is almost insurmountable. For most families, the task will include liquidating the family home. Is this a good result for most families? Not quite! Is there a better way to prepare for the potential expense of a nursing home? The answer is, "yes".
The easiest way for most women to prepare for a potential nursing home stay is to purchase long term care insurance policy, which is more commonly known as “nursing home insurance”. Is it a good buy? Without question, the answer is, “yes”. Was that always the case? The answer is, "no". More than 15 years ago, most of the nursing home insurance policies had so many qualifiers that the average nursing home resident could not meet all of the requirements. Thus, they were not able to obtain any benefits.
Now, 15 years later, after significant governmental regulation, insurance companies are offering quality long term care insurance policies at a reasonable cost. The policies have finally come in vogue.
Today, to have the best coverage available at a reasonable price, I recommend that the policy should include 5 years worth of coverage. The coverage should include all levels of care, including: home health, assisted living, and nursing home care. The policy should also offer a monthly benefit, which, when added to monthly social security and pension income, will allow her to privately pay the actual long term care costs. The policy should include an inflation rider, which allows the policy to keep up with future long term care costs. The policy should include a return of premium rider, which allows for a full return of all premiums paid, if the insured should not use the coverage. Finally, in order to eliminate having to pay premiums forever, I recommend that the policy should include a quick pay option, so that no more premiums after either a single payment, 5 year’s worth of annual payments, or 10 years worth of annual payments. For most women, the aforementioned long term care insurance policy will be well suited for their future needs.
Krause Financial Services, LLC., offers long term care insurance plans throughout the United States.
