No doubt you have heard the general rule of thumb when it comes to retirement planning — invest wisely while you’re still working and protect principal once you retire.
Certainly the risk of outliving your assets is greater today than ever before. As we tend to live longer there’s a real need to make sure that our “nest egg” is protected.
However, one aspect of retirement planning that seems overlooked is the real possibility that you or your spouse may require long-term care.
And that’s where long-term care insurance comes in.
Let me explain…
Retirement Planning and Long Term Care
Long term care is an essential part of retirement planning.
However many people never even think about it, and many financial advisors fail to bring it up. Yet, the fact of the matter is that many people will not be able to take care of themselves in retirement because of stroke, disease, Alzheimers, or other health issues.
And this is precisely why so few people want discuss the issue.
Long term care is not covered by health insurance and only a tiny fraction is covered by Medicare.
But if you or a loved one has a problem that makes them unable to perform the activities of daily living, such as getting dressed, using the toilet, taking showers, making their own meals, cleaning their home, etc., you will need long term care services.
Here are the top 10 reasons why you should make Long Term Care Insurance part of your retirement planning.
Top 10 Reasons to Consider LTC
1. Long-term care costs are projected to triple in 20 years.
2. The average cost in the US for a year in a nursing home is between $55,000 and $77,000.
3. Medicare only covers short term skilled care in a nursing home
4. Medicaid does not apply until you have spent down all your assets
5. Baby boomers make up the biggest group of caregivers.
At the same time they are dealing with their own child care, retirement and health issues. This means they likely do not have the time and energy they need to perform the tasks required.
6. Being a caregiver is really difficult.
The average length of time that caregiving is required is about 4.3 years. Care recipients are an average age of 75 years old. About 60% of caregivers are employed, which means they cannot be home during the day to look after their loved one who needs care. (Caregiving in the U.S., National Alliance for Caregiving and AARP, April, 2004)
7. In 2010, over $11 million in daily benefits were paid from long term care insurance providers. This is 53 percent more than 2007. (AALTCI)
8. Alzheimer’s usually lasts between 5-20 years. The average is 8-12 years.
9. 70% of Alzheimer’s disease patients receives home health care. According to the Alzheimer’s Association, 1 out of 5 women are at risk for the disease and 1 out of 10 men are.
10. If you get a policy when you are younger, you are more likely to qualify for coverage and the premiums will be much lower.
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Long Term Care Insurance quotes…
By getting competitive rate quotes, you can gain a better understanding of the costs associated with getting a Long Term Care policy, and the costs for not having one.
Then you can make an informed decision that’s right for you… and your family.
You can also download your free Shoppers Guide to Long Term Care by clicking the link.
