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COST OF CARE
Long-term care typically involves one-on-one, customized
care. And that can be expensive. The following chart shows
the average national cost of different types of long-term
care services.
Average cost of long-term care services, 2003.
Home health aide: $72/visit
Licensed practical nurse at home: $37/hour
Assisted living: $2,379/month
Nursing home: $4,747-$5,437/month (semi-private/private
room)
Expenses vary considerably by region. To find the cost
of services in your state, check the MetLife links to assisted
living and nursing
home costs.
Every day, the cost of healthcare keeps going up. And long-term
care is no exception. At current rates, the cost of paid
help will almost double within the next 15 years. Those
of us who are not likely to need help until later can expect
to pay even more. This means that long-term care expenses
can eat up a substantial part of a retirement budget. Without
adequate planning for these costs, we run the risk of outliving
our savings, burdening our families, or impoverishing ourselves
or our spouse to pay for care.
Projected annual costs of long-term care, at 5%
annual increase in costs.
| |
2003 |
2015 |
2030 |
Home care:
(5 home
health aide visits per week) |
$18,720 |
$35,299 |
$ 73,385 |
| Assisted living: |
$28,548 |
$51,268 |
$106,583 |
Nursing home:
(Semi-private room) |
$56,964 |
$102,299 |
$212,673 |
TAX INCENTIVES FOR LTC INSURANCE
Federal and state governments are offering a wide range
of tax incentives to make private LTC coverage more affordable.
- A portion of the premiums you pay for certain LTC policies
may be tax deductible from your federal income taxes.
- Many states offer tax credits or deductions from state
taxes for LTC insurance premiums.
- Businesses who pay premiums for LTC insurance on behalf
of their employees can deduct these payments as a business
expense, similar to health insurance.
- LTC premiums paid by employers are not counted as income
for employees.
- The benefits you receive from certain LTC policies are
not taxable.
Talk to a LTC insurance specialist or your tax accountant
to find out more.
Hazards along the
way...
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