Term-Care Insurance - Certified Financial Planner Conroe TX | Starr Financial

Life InsuranceDisability Insurance |  Long-Term-Care Insurance

While we don't want to think about ourselves or a loved one ever needing long-term care, it is a reality that, if not faced now, could cause emotional and financial devastation in the future.

Consider the following when developing your long-term-care plan.

Myths and Facts

Myth: It will never happen to me.

Fact: For Every 1,000 people 

  • 5 will have a house fire
  • 70 will have an auto accident
  • 600 will need long-term care

Source: Family Caregiver Alliance, 2004.(Based on Americans over 65)

You have a one in four chance of needing long-term care if you are age 66 to 80. You have a one in two chance if you are older than 80.

Myth: I won't live long enough to need it.

Fact: Americans are living longer. The fastest growing population is the 85+ group. 50% of 65 year olds will live to be 100.

Myth: I can rely on the government (Medicaid) to help me.

Fact: To some extent this is true; is intended as a safety net for the poor. In order to qualify for Medicaid, a person must spend down all assets to the poverty level. Medicare only covers skilled care for a limited time, only after hospital confinement and does not cover either custodial or intermediate care. Other disadvantages include long waiting lists for admission, necessity of frequent moves to find adequate care, and the government determines the type of care received. Lastly, estate recovery is now mandatory—this means that the states must recover from the estates of beneficiaries any Medicaid long-term-care benefits received.

Additional Considerations

National average yearly cost of nursing home care ... $77,445 per person

(Source: MetLife Mature Market Institute, The MetLife Market Survey of Nursing Home and Home Care Costs, 10/07)

Long term care insurance:

  • Protects your savings and investments
  • Takes the financial and emotional burden off your family
  • Allows you to maintain the independence that you've enjoyed your entire lifetime

Long-term care insurance is not right for everyone. You should not buy long-term-care insurance if:

  • You can't afford the premiums
  • You have limited assets
  • Your only source of income is Social Security or SSI
  • You often have trouble paying for the basic bills

You should consider buying long-term-care insurance if:

  • You have significant assets and income
  • You want to protect some of your assets and income
  • You want to pay for your own care
  • You want to stay independent of the support of others

For an informational packet or a no-cost, no-obligation consultation, please call Starr Financial at 936-756-9870 or send us an email.