Alabama |  |
Genworth Life Insurance Company (Genworth Life)Here are some of the most common questions people ask about long term care and long term care insurance.
What is long term care?Long term care can be broadly defined as care provided by another party for the benefit of those who are unable to care for themselves. Generally, long term care refers to the personal care and other related services provided on an extended basis to people who need help with certain Activities of Daily Living (ADL's) or who need supervision due to severe cognitive impairment, such as Alzheimer's Disease). Care can be provided at home, in the community, in an assisted care facility, or in a nursing home. Learn more about the Odds of Needing It, Who Pays for It?, and the Types of Care Available. Top of Page
How much does long term care cost?Long term care can be expensive. The national average cost for a private room is $74,806 a year.1 At an assumed length of stay of 2.5 years2, that could add up to $177,280 or more!
The average length of time for custodial or informal care in the home is 4.3 years.3 Using today's average cost of $22.15 per hour for a licensed but noncertified home care provider2 equates to an average of $46,072 per year for 40 hours of help per week. Multiply $46,072 by 4.3 years, and you could be looking at an average cost of $198,110 or more for long term home care. See how long term care costs in your state compare to other states across the country. Top of Page
Why do I need long term care insurance?There are several reasons to consider long term care insurance. First, long term care services can be expensive. Second, because Americans are living longer, there's a greater chance that you or your spouse may need long term care at some time in the future. Third, a comprehensive long term care insurance policy can provide both emotional and financial benefits. If you need long term care, it can help you:
Staying at homeYou're probably planning to stay in your home as long as possible. The right long term care insurance can help you do just that. You also can rely on outside caregivers to help relieve friends and family members the burden of providing or paying for care.
Depending on the type of Long Term Care Insurance policy you choose, custodial or informal caregivers including friends or neighbors, may also care for you in your home and receive reimbursement for providing care.
Financial securityLong Term care insurance can help you protect your retirement assets and savings from the high cost of long term care services. The assumed average stay in a nursing home is 2.5 years.2 At an average cost of $70,912 a year1, that could add up to $177,280 or more. The average length of time for informal or custodial care in the home is 4.3 years.3 Using today's average cost of $22.15 per hour for a licensed but noncertified home care provider,1 that equates to an average cost of $46,072 per year for 40 hours of help per week. Multiply $46,072 by 4.3 years, and you could be looking at an average cost of $198,110 or more for home care. If it's necessary to pay out of your pocket for nursing home care or home care, you could quickly deplete your savings and retirement funds. Recent research into the cost of long term care suggests that one in every three Americans could significantly decrease their savings paying for long term needs during the golden years of retirement.7 Without proper planning, unexpected healthcare costs can quickly erode a lifetime of savings and undermine a family's retirement dreams. Freedom of choiceLong term care insurance can give you the flexibility to be involved in the decisions about the type of care you receive and where you receive it. If staying at home is important to you, you may have that option. If you want to live in a facility near a relative, you may be able to choose the location.
Tax advantagesThe Health Insurance Portability and Accountability Act (HIPAA) says that you may be able to include part of the premiums you pay on a tax-qualified long term care insurance policy as a medical expense deduction on your income taxes. The tax information in this material was written to support the promotion and marketing of the contract. The Genworth Financial companies and their representatives and distributors do not provide tax or legal advice. We did not write this material for use by any taxpayer to avoid any Internal Revenue Service penalty. You should ask your independent tax and legal advisors for advice based on your particular situation.
Is long term care insurance affordable?The cost of Long Term Care Insurance policies vary widely depending on your age and the options you choose. However, you may find the long term care insurance premiums to be more affordable than expected.
The younger you are when you get coverage, generally the lower your premiums will be.
For instance, our Classic Select Long Term Care Insurance policy for a couple age 45 costs significantly less than a policy for a 65-year-old couple.
Premiums increase with age the longer you wait to purchase.* 
Certain assumptions have been made in calculating the hypothetical illustration. *Annual premiums are based on a Genworth Life Insurance Company Classic Select Plan in Illinois with $150 daily benefit, plan duration of 36 months, 90 day elimination period, 5% compound inflation protection. Costs vary by state. Premiums remain the same each year (unless they are increased by the company for an entire class of policyholders at once). And generally that means the younger you are when you first buy a policy, the lower your annual premiums will be. It's also important to apply when you're healthy, so you can have coverage when you need it. If you wait until you actually need long term care, you would not qualify for Long Term Care Insurance coverage. Top of Page
Why should I choose Genworth Life Insurance Company (Genworth Life)?Selecting a long term care insurance company is an important decision. You want a company you can trust to help protect your financial independence as you grow older.
The Genworth Life Long Term Care Insurance Division was a pioneer of long term care insurance in 1974 and ever since, it has been an industry leader.4
We strive to have a simple claims process and have received very strong ratings for our claims paying ability5. From 1974 to 2006, we have paid nearly $3.3 billion in claims on home and community care and facility care for claimants ranging in age from 37 to 105 years of age.6
You can count on us to be here today, tomorrow, and in the years to come.
1. Based on rates for a private nursing home room and a Home Health Aide from a non-certified but licensed agency. Genworth Financial 2007 Cost of Care Survey. Conducted by CareScout, an independent research firm. 03/07.
2. National Nursing Home Survey, National Center for Health Statistics, U.S. Department of Health and Human Services, June 2002. While 2.5 years is the average length of stay for all nursing home residents, the study indicates that of the residents who remain in nursing homes for more than 3 months, 30% are there 3 months to 1 year; 37% for between 1 and 3 years; and 33% for 3 or more years.
3. "Caregiving in the U.S." National Alliance for Caregiving and AARP. 2004. Individuals receiving informal or custodial care may not qualify for long term care insurance benefits for this time period unless they meet benefit eligibility requirements.
4. Life Plans Survey. 12/05. Long Term Care Individual and Group Association Top Writers Survey Results. Based on number of individual policies sold in 2004 and individual policies in force as of 12/31/05.
5. Standard & Poor's (AA-/Very Strong/4th highest of 21 ratings) ratings: These ratings reflect the company's claims paying ability. All ratings shown are current as of 12/31/05. Rating shown reflects the opinion of the rating agency and is not an implied warranty of the company's ability to meet its contractual obligations.
6. Genworth Life Insurance Company Business Operations as of 12/31/06.
7. National Governors Association Research Initiative "A Lifetime of Health and Dignity" presented 7/04.
|
