The Median Cost of Long-Term Care in Arizona
So, here is some good news for you. Arizona long-term care costs are below the national average for both assisted living and nursing home care. The not so good news is that these costs are still, probably higher than you think. A year in assisted living in 2017, had a median cost in Arizona of about $77,000. That is for a semi private room – private rooms are over $91,000, and memory care units top $100K.
An Example LTC Insurance Premium for a 59-Year Old in Arizona
Let’s think about that for a minute, and compare these care costs, to the cost of long-term care insurance in Arizona. For comparison, let’s use a 59-year old male, non-smoker, with a couple’s discount and a good health score. Our sample guy – let’s call him Sam – could get a 7-year, $500,000 policy for $258/month in 2017. Sam’s policy would have the standard 90-day elimination period. In other words, his policy benefits would not kick in until the 91st day of care. His annual premium would be $3,351 until he needed care. Once Sam needed long-term care, his policy premiums would be suspended – he would no longer pay in.
Now let’s say Sam was enjoying retirement until age 69, when he suffered a stroke and needed long-term care. In this case Sam would have paid $33,510 in total premiums in 10 years, and he would no longer have to pay. From above, the cost of assisted living was $77K in 2017 dollars, or about $6416/month. In year 1 Sam’s policy would have paid a maximum of $5914/mo., about $500 a month short of the care expense, but an amount Sam was comfortable with. In 2027 Sam’s benefit amount would be $8239/mo., or almost $99,000 per year – probably enough to cover the increase in long-term care expenses. In fact, if Sam spent just 123 days on claim, he would have hit the break-even point between the premiums he paid in, and the benefits he received. That’s pretty amazing, and of course he could have paid more premium to get a higher maximum benefit.
If we extended this example out to 25 years from the day of Sam’s first premium, until he qualified for long-term care, his break-even point would be just 176 days of benefits – to equal his premiums paid in. Of course, Sam’s example is unique to him, your rates depend on your qualifying for insurance, which depends on your age, health, family history, etc.
Great Long-Term Care Plans Available in Arizona
The above example was for the Flex Plan Advantage. Capital Retention also has a plan for family estates that need to protect accrued wealth and plan for generational giving. This one-time premium plan is unique in that it stays liquid, and you can get your premium back if you ever change your mind. The initial premium multiplies 3-8X in value on day one of your policy, depending on your age at issue. Finally, if you never need long-term care, your family receives a death benefit in excess of the premium you originally paid in.
Give Capital Retention a call for straight talk and more details on the unique long-term care products and options available, to fit your family’s financial situation. There is a contract available that gives your family the protections you need, against the high cost of long-term care.