By Frank A. Sciecinski

While most people have insurance for car, home and health, they have not planned for financing long-term care. Unfortunately, long-term care is so expensive that many people who enter such care risk losing their life savings within a year. Even a temporary stay in a nursing home can derail years of careful financial planning.

According to the 2005 Genworth Financial Cost of Care Survey, the national average cost for a nursing home private room is $69,400 per year. The average cost for a semi-private room is $61,000 per year. Most people would rather receive care at home than be transferred to a nursing home, but that can be very expensive as well, with the average hourly rate for home health aides at $18.58. The good news is that by planning now you can increase your choices and reduce your financial risk.

When all is said and done, you are basically left with three choices when it comes to long-term care: rely on family; rely on the government; or rely on long-term care insurance. The first two options have significant limitations. Adult children and other family members often pay for long-term care in the form of lost wages and other unmeasured costs. And government programs like Medicare and Medicaid provide only limited care under specific conditions.

Fortunately, the third option-long-term care insurance-will allow you to transfer the expense of long-term health care to an insurance company. As a result, you can select the type of care you want to receive and where you will receive it. This translates in freedom, control, integrity and flexibility for you.

It is hard to predict what lies ahead. But just as you plan for financial needs throughout your life, you need to think about your health care over the long term. Please contact me for more information on how I can help you better prepare for your long-term health care needs.

For more information, contact Frank A. Sciecinski at Raymond James & Associates, Inc., 200 Bellevue Parkway, Suite 425, Bellevue Park Corporate Center, Wilmington, Delaware, 19809, (302)798-9113/800-225-8043, frank.sciecinski@raymondjames.com.