LTCI Can Help Keep You Out of a Nursing Home

If you needed long-term care, where would you prefer to receive it?

A. In a nursing home

B. At an assisted living facility

C. In your home

According to a recent survey, 2% of the respondents chose “A,” 19% picked “B,” and 79% selected “C.” The answers are hardly a surprise, especially when you consider that the federal General Accounting Office recently reported that one in five nursing homes have deficiencies severe enough to harm or endanger residents. So if the majority of people don’t want to go to an institution for special care, and 20% of the facilities aren’t safe, what are your options?

People often end up in nursing homes because they have run out of money. And if they are married, their spouse may be unable to handle the job as a caregiver. A Medicaid-funded facility is the only remaining choice. Don’t let this happen to you. If given the preference, wouldn’t you rather stay at home?

Look at the average daily costs for nursing home and licensed home care in your area. In some states nursing home stays are more expensive than home care, in others it is the other way around. Most long-term care insurance policies base their home care benefits as a percentage of the nursing home daily benefit. This can range from 50% to 100%, and you should go for the maximum. In addition, you may want to make sure that the policy includes a provision to pay for care by friends or family in your home.

Waiver of premium should be part of your plan. This means that if you require care, you don’t pay premiums. Also confirm that it applies to home care. Some policies only offer this rider for institutionalized care.

In addition, check out plans that include payments for home modifications and equipment that could make your recovery at home easier. And don’t forget a cost of living rider. Medical care expenses only go one direction—up.

Of course with every option, there is added cost. And you will have to balance what you want with what you are willing to spend. I can help you compare the choices and build a comprehensive plan so that you can avoid institutionalized care for as long as possible and remain in your home. Please call the office to discuss Long Term Care Insurance. 717-4000

Will Hepburn, CFP is a private investment manager who specializes in active investment strategies. He owns the Prescott Center for Adaptive Market Strategies, and is President of Hepburn Capital Management, LLC, a Registered Investment Advisor. He may be reached at, 2069 Willow Creek Road, Prescott, AZ 86301, or by calling (928) 778-4000 or emailing This e-mail address is being protected from spam bots, you need JavaScript enabled to view it .

Copyright 2004. Permission to copy granted given the above attribution is included. The information contained in this newsletter is derived from sources believed to be accurate. You should discuss any legal, tax, or financial matters with the appropriate professional. Neither the information presented nor any opinion expressed constitutes a solicitation for purchase or sale or any security.