If you consider the statistics that more than 60% of healthy 65 year olds will need some form of long term care during their lifetime, you’ll agree we need a plan to cover these potential costs.
The current cost for skilled nursing care exceeds $80,000 per year in my home state of California. That will scramble a nest egg in no time.
Most people fall into two camps when they consider the issue of covering long term care costs.
The first camp does not want to think about the possibility. They hope that if they ignore it, it may go away. Or, they plan to deal with it later…when they are closer to actually needing it.
The second camp has proactively sought out more information about long term care insurance but decided that they don’t want to pay that premium cost for something they may or not need.
It is discouraging to deal with the potential costs of long term care insurance. Actual claims are increasing at a rate higher than many insurance companies predicted. This has led to price increases. As a result, some drop their coverage whereas those who are actually sick retain their policies. The result? The pool of those who are insured gets worse…more claims…higher prices…and the spiral continues. Many long term care insurance companies have now stopped taking new long term care insurance business and are leaving the state.
What can we do?