Americans Underestimate Need for Long-Term Care

According to a survey conducted by USAA, only ¼ of U.S. adults believe they are likely to need long-term care, despite predictions from independent organizations that half of the American population is likely to need some form of this specialized and potentially costly health care service.

USAA commissioned the survey to determine how much consumers understand about the costs associated with long-term care.

Survey Says

Survey Findings: 48% believed assisted living or nursing home care costs less than $30,000/year.

Reality: According to Genworth’s 2016 findings, Nursing Home Care in Maryland averages $8,684/month for semi-private room and $9,444/month for a private room.

In addition, the average monthly cost for an Assisted Living Facility is $3,750, Adult Day Care is $1,712, and Home Health Aide is $3,956.

Survey Findings: 23% think all of their long-term care needs will be met through federal programs such as Medicare and Medicaid.

Reality: Medicare, Medigap, and regular health insurance do not cover long-term care. Medicaid coverage is limited to the first ninety days of covered expenses, and the services it covers vary by state.

Questions to Consider

Consider the following questions to help determine your potential need for long-term care insurance:

  1. Do you have a family history of chronic illness such as arthritis, Alzheimer’s disease, stroke, dementia, diabetes, or Parkinson’s disease?
  2. What personal assets do you have to pay for long-term care, if you need it?
  3. How long would your savings last if you were faced with paying the cost of long-term care by yourself?
  4. How will this affect the financial wellbeing of the healthy spouse?
  5. Who will take care of you – or your parents – if long-term care is needed and would you like to have other choices?

If it’s been awhile since you visited the idea of long-term care insurance, give us a call or send us an email. Today there are many options to explore. Let us help you.

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At Medallion Financial Group, we believe financial planning is about Family. We have been helping families invest in the future since 1987 through a holistic planning approach. We recognize there are a variety of needs when it comes to retirement planning, plan rollovers, annuities, college planning, life insurance options, and investment management. It is easy to get lost in a sea of choices. Our financial advisors help with the basics and beyond to enable our clients to get the education, advice and management they need to retire with confidence.

Our focus is twofold: first and foremost, we are fiduciary advisors. We stand against any violation of laws, values, and ethics. Second, we treat our clients as part of our family, not only those who call Maryland and Georgia home, but clients across the US who have benefited from our reputation of personal service, integrity, and expertise.

We strive to exceed client’s expectations – because we have high expectations of ourselves.

post icon in Retirement by Medallion Group Oct 3, 2016