Long Term Care Insurance License

By Larry Lane for www.InvestorZoo.com

Thank you to new medical breakthroughs and new medicines, we as people live longer and more active lives. In 1900, the life expectancy of the average American was 47. Today there are more survivors of cancer and diseases previously considered incurable. Depending on when you're born, you can expect to live 76 to 91 years.

However, all this technology comes with a double-edged sword. The longer you live, the more you have to stretch your dollar retirement. According to Genworth Financial, the cost of long-term care can range from $ 32,000 per year in Louisiana to $ 46,000 in California. Remember that this is in 2009 dollars. Unless you've had your head in the sand for the past 20 years, you know about the health care costs are skyrocketing. The cost of long term care must be taken into account as one of your retirement expenses. In general, experts will tell you that you need 75-80% of your monthly expenses in retirement. the long-term care insurance may be the joker in your retirement plans. If you are 5, 10 or 20 years before retirement, we do not know what the cost will be the long-term care insurance.

Here are some statistics on where we've come as a country and how long we can expect to live:

Culture age group the fastest in the country

Ages 85 and over, the Federal Interagency Forum on Aging-related Statistics. Older Americans 2004: Key indicators of well-being, Federal Interagency Forum on Aging-related Statistics. Washington, DC: U.S. Government Printing Office, 2004.

70% of couples can expect at least one partner needs nursing facilities at home after 65 years

Among seniors with Long-Term Care on the needs of long, about 30% (1.5 million) have substantial long-term care needs (three or more ADL limitations). Of these, approximately 25% are 85 and older and 70% report they are in pretty bad condition. Henry J. Foundation Kaiser. Long-Term Care: Medicaid's role and challenges [Publication # 2172]. Washington DC: Author, 1999.

In 2004, the average daily private room in a skilled nursing facility was $ 192 for a private room or $ 70,080 per year and $ 169 or $ 61,685 per year for a semi-private room. The hourly rate for a home health aid was $ 18.12.

In 2000, the estimated annual costs were $ 13,000 for day care for adults and $ 25,300 for assistance

The average length of stay for the duration of nursing home residents of long-is 2.43 years. Source: CDC, nursing homes National Survey

We have now established that you need long term care insurance. the long-term care insurance is not expensive if purchased at a young age. Like most forms of insurance, it is cheaper when you do not need. Think of it this way, you do not have insurance on your house tornado. That day, you hear the call for weather 100% chance of a tornado 5. In a panic, you call your insurance agent who quotes you an astronomical price. If you have purchased insurance tornado last year, your premium would have been much lower. Same goes with the long-term care insurance. If you buy when you do not need, you will save money in the long term. A person 65 years will pay more for insurance that is beginning to buy their insurance in their 40s.

Long long term care policies are sold by independent insurance companies, usually in conjunction with a policy of life insurance. There is no standardized versions of a policy of long-term care. Benefits vary from company to company. Some sites offer to pay a fixed amount for each day you receive care. Others will pay a percentage of the cost, or a predetermined amount to the creek.