Couples Will Need $85,000 To Insure For Long-Term Care—Fidelity
June 29, 2008
Fidelity Investments estimates that a 65-year-old couple in 2008 will need approximately $85,000 to insure against long-term care expenses, or risk serious financial burdens for themselves and family members.
In a decade, roughly 50 million Americans will be over age 65, the company said. More than half will eventually need at least a year of long-term care, and about 20% will require more than five years of care. A one-year stay in a private room in a nursing home today costs an estimated $76,000.
“With the cost of certain long-term care services rising by as much as seven percent per year for the last five years, retirees who don’t factor these future potential costs into their overall retirement plans may be surprised by the financial impact on themselves or their family members,” said Joan Bloom, senior vice president of Fidelity Investments Life Insurance Co.
Long-term care insurance can protect a family’s assets, and give an individual more control over the choice and quality of their care, Bloom said.
Fidelity recommends long-term care policies with affordable premiums, a financially-strong issuer, coverage of in-home and facilities-based care, a benefit period of two to four years for each person covered, a five-percent annual benefit increase for buyers under age 75, and a “shared coverage” provision for joint policies that would allow each insured to tap into the other’s benefits.
For more information on related topics, visit the following:
