Did you know that long-term care costs less in Georgia than the national average? That means your premiums for long-term care insurance will be less than the national average, as well. With a beautiful climate and easy LTC costs, elder care life in Georgia should be just peachy. Of course, you still need to buy long-term care insurance, it just goes further in Georgia.
Longtermcare.gov states that 70% of us will eventually need long-term care, the costs are much more than most of us realize, and it is not covered by Medicare. Medicaid has strict requirements and spending down assets to meet guidelines is subject to a required 5-year gap between the spend down and applying for Medicaid. So, now, more than ever, you will need to prepare for paying your own long-term care needs.
So, what are the costs for care in Georgia? The state median cost for assisted living was $2800/month in 2017; A semi-private nursing home room was $6200/month, and a private room was $6700/month. Here are the annual costs as of 2017:
- State of Georgia Median Cost for Assisted Living, per year – $33,600
- State of Georgia Median Cost for Semi-Private Nursing Room, per year – $74,400
- State of Georgia Median Cost for Private Nursing Home Room, per year – $80,400
Of course, theses costs will increase each year, so you will want to add an inflation rider to your policy. You can see that your estate or retirement savings can take a real hit if one, or both of you, requires long-term care for any length of time. Most Georgia couples plan for retirement, but they forget about what will end up being their largest expense as a senior – long-term care costs. The good news is, the premiums to take care of these expenses are less that you may think. For $200-$300 per month, you can cover most long-term care expenses in Georgia, whether you need coverage next year of 30 years from now.
Is Long-Term Care Insurance Worth the Cost?
A long-term care strategy is an important part of retirement planning and provides coverage for major issues that most of us will face. Life insurance alone is designed to take care of our heirs upon death, when they face life without our income, or it insures a planned gift to our children. However, if we end up like most Americans, needing long-term care before our death, our families face a monumental challenge in paying for that care, before life insurance benefits are ever available. You could leave one spouse with no income to live on, or even being a burden on your children, when your plan was to give them an inheritance.
Here is an example of at you get back in benefits, for the money you paid in, for a sample policy in Georgia. Paying a premium of $279 per month from age 59 to 79 (twenty years) equals $66,960 in total premium. Now look at that chart of long-term care costs, in 2017 dollars, above. The cost for a nursing home for just one year is more than the total premium you would pay in 20 years. In fact, you would have to be on claim for just 169 days to break even, yet your policy would keep paying for 7.3 years and the nursing home bill would be $11,906/month by 2037. You bet, long-term care insurance is worth the premium and will protect your family from the devastating costs that 70% of us will face. *
These plans include concierge level Care Coordination Benefits to assist you with family, financial, and care logistics to assist you in your long-term care needs. Our professionals help in comparing the cost of long term care insurance in Georgia, to find the best plan for your situation. Give us a call today, and we will fit you with the best plan that protects your estate and your family’s needs.
*Example given was for a 59-year old, male, non-smoker, in good health, with a couple’s discount and 3.75% compound interest buy-up. The $279 premium would pay Assisted Living or Nursing Home Care at $5700/mo. max in year one, and $11,906/mo. max in year 20. The total maximum benefits would be $500,000, or 7.3 years on claim.