Long-term care is the assistance you will need when you are unable to perform basic activities of daily living, such as bathing, dressing or eating, or you experience mental deterioration caused by Alzheimer's, other mental illness or brain disorders. Long-term care may result from accidents, illness, advanced aging, strokes or other chronic conditions.
The leading causes of long-term care insurance claims are Alzheimer's disease, stroke and arthritis. Alzheimer's accounts for nearly one-third of all claims for nursing home care.
As boomers reach their own retirement age, they find themselves caring for their aging relatives who have increasing medical needs and dwindling financial resources. More than 49 million Americans care for someone over the age of 50 who is ill or aging. The cost of providing this long-term care is twofold: the cost to the impaired family member and the cost to a family member who tries to be the caregiver.
Based on a 2012 survey, the median annual cost of care for a semi-private room in a nursing home in Texas is $40,150. Assuming a 5 percent inflation rate each year, the estimated cost in 10 years would be $62,285. With the average length of care being 2.8 years, the estimated total cost of three years of nursing home care today is $120,450. In 10 years, it is projected to be $186,855.
In addition to these actual out-of-pocket expenses, it is estimated that a caregiver over the age of 50 will also lose an average of $304,000 in total wages, benefits and accumulated wealth by caring for a parent.
Most Americans are not prepared for this expense. Inexpensive group long-term care insurance can be a practical and affordable way to pay for the high cost of long-term care services. It can help you maintain your independence so that you don't become a burden on your family, maintain control over how you spend your savings and give you more choice in who provides your care.
The mistake people make is not looking into this coverage when they can still health-qualify. More than half of new individual policies are sold to individuals between ages 55 and 64, the age when they must act if they want long-term care insurance to be an option. Including group long-term care insurance in your bank's employee benefits package provides the opportunity for your employees of all ages to plan for one of the most imposing financial burdens of their lives.
The Burkholder Corporation is in our 73rd year of providing valuable protection to Texans. We are uniquely qualified to design and install a group long-term care insurance plan customized for your institution. Call and find out what your neighbor already knows. Contact Mark Rutherford at 800-962-1958 or mark@burkholdercorp.com.
Copyright:
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(c) 2012 Texas Banker Association |
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Proquest LLC |
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