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Even a short nursing home stay can take a huge bite out of your assets

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 Kelly Blog PhotoA recent study indicates that even a short nursing home stay can ruin your finances. The Employee Benefit Research Institute recently released the results of a study that illustrate the enormous hit your finances could take if you had need for long-term care services.

Data used in the study shows the median household wealth for those who spend fewer than 30 days in a nursing home is about $108,000. But after six months, many nursing home residents are effectively broke, with median assets of barely $5,000. In other words, after six months in a nursing facility, half of all residents lose essentially all of their wealth. This includes both their home equity and financial assets.

Because neither health insurance nor Medicare was designed to pay for long-term care (LTC) services, individuals who require LTC services as a result of an accident or illness may need to dip into their personal savings or use other assets to cover the costs…unless they have LTC insurance.

If you are curious about how LTC insurance fits into your financial plan, sign up for an Understanding Long-Term Care Insurance seminar or schedule a personal consultation.

Kelly Behnke, CIC, CISR, ACSR
Personal Insurance Consultant