Father's Day: Long Term Care Insurance

BOSTON (CBS) - Long-term care is a variety of services that includes medical and non-medical care. Most long-term care is to assist people with support services for activities of daily living such as dressing, bathing, and using the bathroom. Long-term care can be provided at home, in assisted living facilities or in nursing homes.

The cost of the LTC insurance premium is considered a medical expense when doing your taxes.

According to Genworth Financial's Long Term Care survey, the national annual average cost of a semi-private room in a nursing home is around $82,000 and it costs over $135,000 here in Massachusetts.

According to the CDC, there are 1.7 million beds available. According to AARP only 2% of Americans age 65 to 84 and 14% of Americans age 85 or older live in nursing homes. Many retirees may enter a nursing home as a rehab facility after surgery such as a knee replacement but then it is covered by their health insurance.

So does Dad need long-term care insurance? I don't know! It's such a personal decision. If Dad has very few assets and it would be a financial hardship for him to pay the premiums for the insurance, then he probably doesn't need it. He will be eligible for Medicaid and community home-care services for a small fee because they charge on a sliding scale.

If Dad has assets over $100,000 and a home, you might want to consider buying the insurance. If dad does not want the insurance and the kids want to protect the house they can buy the insurance for dad.

If his invested assets exceed $1 million, he may not need long-term care insurance because he can self-insure at that level.

The cost of LTC insurance has increased 30% over the last five years and less than 15 companies are now selling LTC insurance. When shopping for a policy look for a reputable insurance company.

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You can hear Dee Lee's expert financial advice on WBZ NewsRadio 1030 each weekday at 1:55 p.m., 3:55 p.m., and 7:55 p.m.

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