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Long Term Care

  • About 70 percent of people over age 65 require some long term care services, and the likelihood of needing care increases as you age.1

You may have spent years carefully working and planning so that you have sufficient income for a comfortable retirement. You may believe that your retirement savings are protected; but have you ever considered what might happen if you or your spouse required long term care?

  • In 2008, the average annual rate for a private nursing home room was $76,460, and Medicare-certified home care costs averaged $38 per hour.2

The cost of long term care services provided in the home, at a community facility or in a nursing home are not covered under major medical plans or Medicare, and therefore can be a considerable threat to your retirement savings. Those who have had family or friends in need of caregiving services know of the financial, physical and emotional burdens associated with long term health care.

Long Term Care Insurance: Protect Your Independence

Long term care insurance is an important financial tool to help you protect your assets and preserve your independence. The potential expense of long term care could easily deplete your entire savings. It is a risk you can't afford to ignore. Without long term care insurance, your financial plans may not be complete.

Comprehensive Long Term Care plans can provide coverage for:
  • nursing home care
  • assisted-living facilities and community-based care
  • home care

Who should consider Long Term Care Insurance?

From a financial standpoint, the best candidates for long term care insurance are individuals between the ages of 55 and 75 who have at least $200,000 in assets to protect. Those under age 55 may be interested in purchasing long term care protection for their parents, or for themselves since the premiums may be lower at a younger age.

Is Your Retirement Plan Complete?

The annual premium for a typical long term care policy for a married couple, both at age 62, can range from $2,100 (with simple inflation) to $2,520.3 Which would you prefer to do: Pay $60,000 or more per year for long term care expenses if you or a family member requires care, or purchase a long term care insurance policy now with an annual premium that may cost less than one month's stay in a nursing home?

1 Administration on Aging, October 22, 2008
2 Genworth Financial 2008 Cost of Care Survey
3 For illustrative purposes only. Based on a 4-year, 90-day elimination period and $150 daily maximum benefit. Costs will vary based on age, benefits and carrier.

This is based on our understanding of Medicare and Medicaid provisions. We do not offer tax or legal advice. Please consult your own tax and/or legal advisor for such guidance.

Citigroup, Inc., its affiliates, and its employees are not in the business of providing tax or legal advice. These materials and any tax-related statements are not intended or written to be used, and cannot be used or relied upon, by any such taxpayer for the purpose of avoiding tax penalties. Tax-related statements, if any, may have been written in connection with the "promotion or marketing" of the transaction(s) or matters(s) addressed by these materials, to the extent allowed by applicable law. Any such taxpayer should seek advice based on the taxpayer's particular circumstances from an independent tax advisor.

Insurance products are offered through SBHU Life Agency, Inc.

For more information, please contact your Financial Advisor.

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