Long-term care insurance can help you pay for health care needs as you age.
Our minds and bodies wear out as we age.
As one wag put it, birthdays are not for sissies anymore.
This is a part of aging.
Aging is a part of life.
When your body wears down, you will require care.
Well, a recent U.S. Department of Health and Human Services report would say otherwise.
About 70 percent of folks over age 65 will require some form of long-term care, with some 40 percent need care in a nursing home.
In light of the sobering statistics, a recent nj.com article asks “Should we get long-term care insurance?
The national median cost for an assisted living facility comes out to $3,750 per month.
Need a nursing home?
This will be about $8,010 per month.
And the chances are high you will be staying longer than a month.
More than half of nursing home patients stay at least 12 months.
A quarter of residents stay for more than three years.
If you have dementia, you can expect an even higher bill.
Are you expecting Medicare to pay these bills?
Coverage for long-term care costs is limited.
Medicaid will only be an option for those with limited financial resources.
What can you do to meet these daunting cash calls?
Long-term care insurance is a great option.
In fact, that is the one Gretchen and I chose for ourselves about nine years ago.
While it can come with a high price tag, if you go on claim it can pay off significantly for assisted living services, home healthcare, or nursing home care as you age.
If you get the insurance while you are not too old and have good health, your payments will be lower.
You may be able to get a hybrid life insurance/long-term care insurance policies if you are afraid of wasting premiums.
With this flavor of insurance policy you will either receive the long-term care payments, the full life insurance benefits, or a combination of both.
If you are not sure what you need, work with an experienced financial advisor.
He or she will be able to help you come up with a plan to fit your needs.
Remember: “An ounce of prevention is worth a pound of cure.” When making your financial, tax and estate plans, do not go it alone. Be sure to engage competent professional counsel.
For more information about estate planning in Overland Park, KS (and throughout the rest of Kansas and Missouri), visit our estate planning website and be sure to subscribe to our complimentary estate planning e-newsletter while you are there.
Reference: nj.com (January 12, 2018) “Should we get long-term care insurance?”