as being one of the most important types of insurance to have. If you are Baby Boomer tha does not have Long Term Care Insurance, you need to take a serious look at it.
Research has recently indicated that 69 percent of Boomers turning 65 in 2006 can expect to use long-term care. The average stay is about 2 ½ years, or about 30 months. You think that sounds bad, it gets worse. In a study done by Genworth Financial, nursing home care in IL has gone up by 26 percent over the past 5 years. This compares to 17 percent increase nationally.
Long Term Care Cost How Much?
Say it ain’t so Joe. Can it really cost that much? The study also found that one year in a private nursing home in Chicago costs $72,567 and $52,362 throughout the rest of the state. Considering that the average annual household income is only around $48,000, the nursing home costs is about 1 ½ times that. Those figures aren’t expected to slow down any time soon, with nursing home costs rising faster than the rate of inflation.
2008 Cost of Care Survey:
A private one-bedroom unit in an assisted living facility in the U.S. has an average annual cost of $36,090. In Chicago, the average cost is $54,089 per year. In other parts of the state, the average cost is $35,472 per year.
Nationally, the average hourly rate for a non-Medicare certified, state licensed home health aide is $19.18, a cost that translates to $43,884 per year for 44 hours per week of care. In Chicago, the average hourly rate is $20.42, or $46,721 per year for 44 hours per week of care. Elsewhere in Illinois, the average hourly rate is $18.65, or $42,671 per year for 44 hours per week of care.
Adult Day Health Care:
First year research findings indicate the average annual cost for five days a week in an adult day health care facility is $15,236 nationally. The comparable cost in Chicago is $13,156, and $15,959 throughout the rest of the state.
More good reads on Long Term Care:
Cash Money Life: Sponsor’s Free Long Term Care Insurance Guide
Good Financial Cents: Long Term Care Insurance
Tough Money Love: Time For A Serious Look At Long Term Care Insurance
Cash Money LIfe: Four Ways To Not Get Stuck in the Sandwhich Generation