“My kids will take care of me; we’ll take care of each other, I’ll shoot myself.” Sound familiar? These are just a few of the statements made by seniors to avoid the reality that there may come a time for placement in a nursing home. The reality is that their kids of spouse is not physically, mentally, emotionally, or financially able to provide the necessary care. There are ways to delay or in some cases, eliminate the possibility of this happening.

Today, there is more care being provided in one’s own home. It is being done by family members or by paying someone more qualified. The cost of professional care can range from $16.00 per hour for a Certified Nurses Aid to $50.00 an hour or more for a skilled professional, such as a Registered Nurse.

Round the clock care can be done in several ways, by the day or by the hour. By the day is when a care giver lives in the patients home for 4 days and another one for 3 days. This is the least expensive. The cost can range from $195.00 per 24 hour day on up. This is almost $6000.00 per month or more. The second way to pay for round the clock care is by hour. At $16.00 per hour, 24 hours a day, 7 days a week, this can add up to over $11,000.00 per month. Not only the average retired person cannot afford this, a lot of upper middle class ones cannot afford it for very long. This is why sometimes people are placed in nursing homes because even at $4500.00 per month, it is still less expensive than 24 care at home.

To assist in this financially burdensome task are insurance policies that pay for care in your home or someone else’s. These policies can pay all levels of care. Benefits can include assistance in ADLs (activities of daily living such as bathing, dressing, grooming, eating, mobility, toileting, taking medication, ect.) and IADLs (instrumental activities of daily living such as paying bills, cleaning, laundry and meal preparation.)

Some policies can pay for family members or friends to do certain types of care. Other types of care include adult day care. Daily benefits can range from $30.00 per day to $250.00 per day or more. The length of time you can receive benefits ranges from 6 months to a lifetime and can start from the very first day you need care of have an elimination period where you pay for a period of time and then the policy pays. Some policies do not require the use of a licensed Home Health Agency.

Optional benefits can be added for an additional cost. These can include riders for inflation protection and return of premium. With most companies, it is necessary for the applicant to meet the medical requirements before a policy issued.

Long term care costs
Among all the uncertainties surrounding professional long term care is one sure thing: It costs a lot. While care can sometimes be provided by family or friends, paid care often becomes a necessity.

Unfortunately, public programs cover only so much of the cost. A great majority of individuals must rely on personal income and resources to pay for long term care. The simple tools at the right can help you estimate the cost of care and the amount you’ll need to save each month if you plan to pay for it out of pocket.

Caregiver costs
Family caregivers face out-of-pocket costs that aren’t covered by any policy or public program. On average, out-of-pocket expenses range from $386 per month (for caregivers living one to three hours away from their loved one) to $674 per month (for those farther away). This includes transportation, phone charges, and other incidental expenses of arranging and delivering care.

How are others paying for long term care?
The chart below represents the sources of funding of all U.S. long term care, including care provided to low-income individuals. Note that Medicaid is available only to those who meet strict state-specific limits on both income and assets that generally require impoverishment. Medicare provides some coverage for long term care related to a specific medical event or as part of rehabilitation, but does not generally cover ongoing care.