| Future Costs
Today long term care services cost more than $66,000 per year, on average, for nursing home or in-home health care services, according to industry estimates. And these costs are rising at more than 5% per year.
Escalating cost of long term care
(for nursing home or in-home health care services, rounded to nearest $1000)
|
Today's cost per year (2006) |
$66,000 |
Annual cost in 5 years |
$84,000 |
Annual cost in 10 years |
$108,000 |
Annual cost in 20 years |
$175,000 |
Annual cost in 30 years |
$285,000 |
Annual cost in 40 years |
$465,000 |
*Based on annual increase of 5%
The average stay in a nursing home is 2.4 years; and the average duration of home health care is 4.5 years. So the total outlay for an instance of long term care ranges, on average, between $158,000 and $297,000 based on 2006 costs (higher taking inflation into account).
As costs escalate, the average total outlay will exceed $1 million by the time millions of today's Americans are ready to make their claims.
Few can afford this expense without depleting entire estates or seeking public assistance. That's why LTC insurance is so increasingly vital and why Washington and state governments are promoting it so aggressively.
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Gary Melnikoff
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