With costs approaching and frequently exceeding $30,000 annually, this is
an area of concern to all, especially those who have been successful in
accumulating significant assets.
Extensive planning is often done to conserve these assets and protect them
from high estate taxes. It is equally important to consider the effect
a long-term stay in a nursing home can have on an estate. Death taxes
and a long-term illness can exhaust accumulated assets. To avoid having
to "spend down" assets before government programs (Medicaid) will pay for
long-term care, a long-term plan may be purchased that will provide the
dollars necessary for care. As with most types of health insurance
plans, the premium increases as we age and the risk increases. The
following chart shows representative annual premiums for $100/day, 60-day
waiting period, 5% compound inflation benefit at various ages.
Issue age 50 - $ 552/year
Issue age 55 - $ 723/year
Issue age 60 - $ 993/year
Issue age 65 - $1437/year
Issue age 70 - $2097/year
Other optional benefits such as home health care are available for an additional
premium. As in any estate planning situation, with long-term care
the earlier one starts in planning the solution, the lower the cost.
Individuals who have been successful in accumulating an estate should be
careful in planning for estate taxes and long term care costs. We
would be happy to talk with you about the need, the benefits and the costs
as they would apply to your situation. Please give us a call.
Babbitt-Sholund Insurance 201 E. Bell Street, Neenah, WI 54956 • Phone: (920) 722-7531 Toll Free: (800) 236-8600
