It's Not the Beatles, But It Is a Mania
By Ric EdelmanAre you going to get by with a little help from your friends?
A lot of people seem to have really good friends whom they expect to help pay for their long-term care services some day.
Indeed, almost a quarter of Americans surveyed say that they plan to rely on friends and family to help cover the costs should they find themselves in need of assistance with the basic tasks of daily living such as bathing, eating and dressing, according to a 2009 survey released by the Life and Health Insurance Foundation for Education.
Do you know the cost of a nursing home? A home health care aide? Take our poll and then continue reading the article below to find the answer.
Perhaps the respondents don’t realize that the average cost of a home health aide now tops $6,000 a month and private nursing home care costs more than $80,000 a year, according to the Genworth 2009 Cost of Care Survey.
Worse, many incorrectly believe that they can rely on insurance instead. Nearly half — 47% — mistakenly believe that their health insurance or government programs such as Medicare and Social Security will pay their long-term care costs. They’re wrong — only Medicaid will pay, and only if you’re impoverished.
Only 10% provided the right answer: They have purchased long-term care insurance, which is the best cost-effective way to ensure that you’ll be able to pay for the care you’ll need
From the February 2010 Inside Personal Finance