ALBUQUERQUE: Policies are rising in price, while benefits are getting skimpier.
For aging baby boomers, planning for long-term care costs becomes more pressing every day. But the insurance that helps to cover these costs is surging in price, while the benefits are significantly decreasing.
As prices rise, health care experts are engaging in a fierce debate about whether the coverage is worth the years of premiums. Even when people do go into a rest home, those bills may not be as enormous as many people believe. Half of men and nearly 40 per cent of women who enter rest homes never have a stay exceeding three months, according to a recent study.
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5. Wealthier people – those with financial assets of perhaps $2.5 million or more – may decide to forgo insurance. This affluent group can cover care costs – and given the relative rarity of long nursing-home stays, their heirs will generally better off if they don’t purchase insurance.