Johns Hopkins University has teamed up with Mercer Voluntary Benefits, the world's world's leading insurance broker and strategic risk advisor, to help you plan for your future long-term care needs. Through Johns Hopkins University, you have an option not available to the general public.
Long-Term Care Reality Check
Which one of these statements best describes you:
1. “I don’t worry about long-term care because I’m not old enough to even think of needing it.”
2. “If I or my spouse need long-term care, our workplace medical insurance or disability
insurance will pay for it.”
3. “If I or my spouse need long-term care, Medicare or Medicaid will pay for it.”
4. “Since I’ve saved and invested enough over the years, I can easily afford to pay for long-term care.”
If you make an incorrect assumption about your need for long-term care—or your ability to pay for it—you could be fooling yourself into tragedy and even financial ruin. The truth is, these are four of the most misunderstood myths about long-term care.
- Medical and disability benefits simply do not cover long-term care. Your medical benefits are designed to pay for short-term conditions you’re likely to recover from. Your disability insurance doesn’t cover costs of nursing home or at-home assisted-living care.
SOURCE: Sally Herigstad, “No Long-Term-Care insurance? Uh-Oh”
- Medicare and Medicaid limit what they cover. Medicare pays for home health care under certain conditions, but not custodial care or prolonged nursing home care. And to qualify for Medicaid’s poverty-line income level, you’d have to surrender most of your assets.
SOURCE: Kaiser Family Foundation, “Assess Long-Term Care Needs and Options"
- Assisted-living care costs have mostly outpaced investment gains. The annual cost of a private nursing home room ranges from about $80,000.00 to $145,000.00. Considering that the average nursing home stay is 2.4 years, you could need to have saved as much as $500,000.00—after the savings and investment meltdown of 2008.
SOURCE: Smart Money, “The Basics”
Call Mercer Voluntary Benefits today at 1-866-795-9362 for your no-obligation consultation.
This is why an increasing number of experts agree that some form of long-term care funds are as essential to a well-thought-out family financial plan as a will.