One of the most important pieces of end-of-life planning for most clients is long-term care insurance. With Americans living longer and health care costs continually rising, long-term care can be a truly scary expense.
According to a study published by Yale University, a modest 5 percent annual increase in health care costs could mean that long-term care could run $400,000 per year 30 years from now. The average length of a long-term care situation is now four years, but there is reason to believe that advances in medicine might extend that for the next generation.
The self-insured don’t have to worry about claims being denied. It’s not hard to find horror stories from people who paid thousands in LTC premiums, over the course of decades, only to find their claims denied, or at least delayed. This is never an issue for the self-insured.