Women and Nursing Home Care

Article printed with permission by Dale M. Krause, J.D., LL.M., of Krause Financial Services

Recent statistics clearly show that in the average nursing home, women residents will outnumber men by three to four. Why is this case? The answer is simple, women live longer than men. The result of living longer, at a time when most are frail and without someone in the home to provide simple care, makes them most vulnerable to enter a nursing home. A simple slip and fall can change the world.

With the high risk, there is also a high cost. Nursing homes in Wisconsin charge $6,500 per month for typical nursing home care. Furthermore, with the average stay lasting 36 months, the total cost can reach $250,000.00. For those with Alzheimer’s and dementia, the stay will last longer, and will cost in excess of $400,000.00. Are most women prepared to pay these amounts? The answer is, “no”. In most cases, to raise the funds, family members will be forced to liquidate assets, including the family home. Is this a good result? Not quite!

Is there a better way to prepare for the potential expense? The easiest way to prepare is to purchase long term care insurance policy, which is more commonly known as “nursing home insurance”. Is it a good buy? Without question, the answer is, “yes”. Over the last 15 years the policies, with the government forcing insurance companies to provide quality policies at a reasonable cost, the policies have finally come in vogue.

Today, a policy should include 5 years worth of coverage, for all levels of care, including: home health, assisted living, and nursing home care. The policy should offer a monthly benefit, which, when added to social security and pension income, will allow a person to privately pay the actual long term care costs. The policy should include an inflation rider, which allows the policy to keep up with future long term care costs. The policy should include a return of premium rider, which allows for a full return of all premiums paid, if the insured should not use the coverage. Finally, in order to eliminate pay premiums forever, the policy should be structured so that it is paid up – no more premiums after either a single payment, 5 year’s worth of annual payments, or 10 year’s worth of annual payments. For most women, the aforementioned long term care insurance policy will provide the benefits that they need, when they need them most.