What State Is The Cheapest For Long-Term Care Costs?

Pop quiz

1.      What state is considered the southern most northern state and the northern most southern state?

2.      What state has the oldest population of any state? The median age is 40.

3.      On January 26, 1960 Danny Heater, scored 135 points in a high school basketball game earning him a place in the Guinness Book of World Records. What State was he from?

4.      The first state sales tax in the United States went into effect on July 1, 1921, which state was it?

If you could answer the questions above than you know the answer to what state has the lowest average annual cost for Long Term Care. Genworth just released their 2012 cost of Long-Term Care Survey and provides us with a glimpse into the escalating cost of LTC. This article explains everything in detail.

With the release of its 2012 Cost of Long-Term Care Survey, Genworth Financial provides a glimpse into the escalating costs of LTC of various levels throughout the country. The survey, conducted by CareScout, covers almost 15,300 LTC providers in all 50 states as well as Washington and is broken down into 437 regions across the country.

Genworth also provides an interactive map and a mobile app, so that advisors and their clients can check out the data anywhere, any time. With costs for care rising at a five-year annual rate of 5.71% for assisted living facilities and 4.28% for private rooms in nursing homes, but only 1.09% for licensed home care aides, it’s more important than ever to know which states are the most affordable when planning retirement.

The following are the Top 10 Cheapest States for LTC Costs after costs have been averaged for the categories of licensed home care, assisted living and nursing home private rooms. Adult day care was omitted from the average (but provided separately for your information) because variation in that category is so wide from state to state, and from other LTC expenses within each state, that it results in an inaccurate picture of overall LTC expenses.

10. Kansas

Average Annual Cost: $47,808

Licensed home care: $41,184

Assisted living: $42,015

Nursing home (private room): $60,225

Adult day care: $18,200 (not included in average)

9. Texas

Average Annual Cost: $47,029

Licensed home care: $41,184

Assisted living: $38,400

Nursing home (private room): $61,503

Adult day care: $8,754 (not included in average)

8. Kentucky

Average Annual Cost: $46,930

Licensed home care: $38,896

Assisted living: $32,892

Nursing home (private room): $69,003

Adult day care: $15,288 (not included in average)

7. Alabama

Average Annual Cost: $45,939

Licensed home care: $36,608

Assisted living: $35,370

Nursing home (private room): $65,839

Adult day care: $6,500 (not included in average)

6. Georgia

Average Annual Cost: $44,257

Licensed home care: $38,896

Assisted living: $30,000

Nursing home (private room): $63,875

Adult day care: $15,600 (not included in average)

5. Arkansas

Average Annual Cost: $43,838

Licensed home care: $38,896

Assisted living: $33,720

Nursing home (private room): $58,900

Adult day care: $16,640 (not included in average)

4. Oklahoma

Average Annual Cost: $43,171

Licensed home care: $42,900

Assisted living: $33,015

Nursing home (private room): $53,597

Adult day care: $13,780 (not included in average)

3. Louisiana

Average Annual Cost: $42,747

Licensed home care: $34,320

Assisted living: $37,200

Nursing home (private room): $56,721

Adult day care: $15,600 (not included in average)

2. Missouri

Average Annual Cost: $42,140

Licensed home care: $41,916

Assisted living: $29,025

Nursing home (private room): $55,480

Adult day care: $18,720 (not included in average)

1. West Virginia

Average Annual Cost: $41,448

Licensed home care: $36.608

Assisted living: $36,000

Nursing home (private room): $88,308

Adult day care: $13,390 (not included in average)

Now that you know which states are the cheapest do you know what to do? The answer is easy talk to your clients about Long Term Care costs. Show them illustrations even if they haven’t asked for them. You going the extra step will show them that you are dedicated to being their producer.

Even if your client is not interested in a traditional Long Term Care policy there are other options. With more and more companies offering Long Term Care as a rider on a Life insurance policy there is no reason for you not to show it to your clients that have asked for a Life illustration.

This week April 30th-May 4th, 2012 Shaw American is offering a $100 Home Depot Gift Card on any Long Term Care Applications with Genworth. Go here to check out all the details of this weeks Marketing Incentive.

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