There are generally three types of people in this country: Those that can afford Long Term Care (the very rich), those that don’t need it because they are on Medicaid, and everyone else. If you are in the middle, how will you pay for home health care or nursing home care?
The average cost of a Nursing Home bed in the US is $229 (2011 Metlife survey). However, there is a wide range; its $687 a day in Alaska, $381 a day in New York City and Hartford, and $307 a day in New Jersey. Annually, a nursing home bed in New York City costs$139,065 per year!
Home Health Care costs average $21/hour in the US, or $43,680 a year for a 40 hour week.
The Biggest Questions you have to answer are:
- How will you pay for home health care or a nursing home?
- Do you enough assets that it is worth spending the premiums?
- When should you buy?
- Should I buy a Partnership Program?
There are also tax deductions available for both individual and business owner when purchasing a Long Term Care Policy.