New York Times answers on Long Term Care Insurance

I just finished reading a great article by the New York Times and basic foundation info for people beginning the process researching if long term care insurance is right for them.  The New York Times article begins with this question:

"Q. I have heard general advice that for couples with net worth of over $1.5 million, long-term care insurance is not necessary from a probabilities standpoint. Do you agree with this advice and if not, is there a net worth point where you feel long-term care insurance is not a priority? — Mark Little
A. We need to start with understanding the risk. Recent research indicates that 69 percent of those turning 65 in 2005 can expect to use long-term care. Of those who do, 37 percent will require facility care.
The average facility stay is about two and a half years, or about 30 months. A 2007 MetLife survey provided the average cost for a semi-private room in a nursing home. Nursing homes in the New York City area average $340 a day, which means an average stay in the New York City area today could cost over $310,000.
The question to ask is: Could you handle this cost if something were to happen today? What about tomorrow? Long-term care expenses are anticipated to increase by around 5 percent each year. Assuming you and your spouse are 60, at the rate of 5 percent inflation per year the price will be over $600,000 by the time you reach age 75, assuming just one of you needs care." 

This brings up a good point to consider when deciding if LTC is right for you.  Long Term Care Insurance is not for everyone, but for people with liquid assets below 2 million or so it might be worth a look.  Take a minute to fill out the form below and we'll mail you quotes from the top 5-6 carriers.