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Under Construction 
Care Cost:
2005: National average for a Private Room in a nursing home: $74,000 (Source: MetLife)
Between 2004 and 2008, nursing-home costs are projected to rise by 5.6 percent a year, and 5.9 percent for four years after that.
In 2003 nursing-home day rates range from $96 in Shreveport, La., to $420 in Alaska.
In 2021, when today's 60-year-olds might need such care, the average rate will have risen to about $480 a day, or $175,200 annually. (Consumer Reports - CR)
55% of 65 yr. olds will never need it.
Only 10% will need more than two years of care.
The average stay is 2.4 yrs. of care.
One out of four 65-year-olds flunk the physical and are rejected for long-term-care insurance; at 75, it's one in three.
Premiums escalate as you age. For example, in 2003 a plan that costs a 50-year-old $1,625 annually will run a 60-year-old $3,100 and a 70-year-old $7,575.
Recommendations:
Consumer Reports stated in 2003:
"A CR investigation, for which we reviewed 47 policies, reveals that for most people, long-term-care insurance is too risky and too expensive. As with health insurance, you must keep paying to keep it in force. If premiums rise, you may have to drop the coverage, possibly losing everything that you've paid. The policy's benefits may cover only a portion of the total expense. Many policies are packed with catches that can keep you from collecting. Finally, there's no guarantee that long-term-care insurers, some of which have weak balance sheets, will be around 20, 30, or 40 years from now when you need them to pay."
"In preparing this report, we established criteria that could make a policy a worthwhile hedge against the costs of long-term care, if you can afford it. "
If you buy too young new systems for care may emerge that will not be covered by a policy.
Wait till your 50 yrs old (Sac Bee) or 65 yrs old (CR) to buy.
If you buy later than age 70, the policy will likely be too expensive.
What to look for:
Policies should increase benefits for inflation
Note: Some companies have drastically raised premiums to cover the increased benefit.
Policies should cover home care and assisted living.
You should look for a partial refund if you cancel.
Sources:
Long-Term Care and 2006 and 2005 Press Releases at MetLife Mature Market Institute
Long-Term Care at Invest-FAQ
Long-Term Care Insurance Coverage, May 2006, AARP
Nov. 2003 Consumer Reports
Oct 22, 2006 Sacramento Bee
Complexity in long-term care coverage, July 13, 2006, Sacramento Bee
Long Term Care at WikiPedia
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last updated 24 Oct 2006
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