Very few of us enjoy discussing the need to plan for unforeseen events in the future.
Especially when they are as emotionally charged as our own mortality, or “end of life” issues such as aging with dignity.
This point became painfully apparent to me after hearing that my 45 year old cousin passed away from cancer. From diagnosis to funeral was a shockingly short four weeks. With teenage kids left behind many of us wondered aloud at the wake if he had enough life insurance to cover upcoming college tuition for his son and daughter.
LTC Insurance and Planning
How is life insurance and long term care insurance similar?
Both are designed to protect your family from unforeseen financial hardships from possible future events. Life insurance protects your family by providing a lump sum death benefit that can ease the financial hardships associated with an early passing.
Long-term care insurance, however, protects your family – and your assets – from the high costs of requiring long-term care services. And though long term care is not just about getting older, most of us consider this type of event as being more likely when we get older.
In either case, the fact remains that there are three important reasons why most people will need this type of coverage.
They are:
- long-term care services are expensive
- few people have sufficient assets for their retirement
- freedom and independence to stay in your home
The costs for long-term care services continue to rise each year.
In fact, the national average cost for a semi-private room in a nursing home comes out to more than $79,000 a year. When you factor in that the average need for long-term care services is approximately 3 to 4 years, you can see that the cost is well over $300,000 total.
And these numbers are just “average.”
You are receiving care while in your home can be quite expensive as well.
Help with cooking, cleaning, or other tasks comes out to approximately $20 per hour. If you require services for eight hours a day, for 20 days in a month, the annual costs is more than $38,400. And if you factor in the care provided by a home health aide will costs are even more expensive.
Next, you have to consider that few of us have put away enough money for retirement.
What’s more, many people mistakenly believe that long-term care services are covered by health insurance or Medicare. However, health insurance does not cover the cost of long-term care services. Additionally, Medicare only provides for a limited amount of skilled care for people who are recovering from an illness or injury – and it never covers the costs of “custodial care.”
And liquidating assets in your retirement, i.e. selling your home, cashing in stocks or bonds, or dipping into your 401(k) plan is hardly a sound financial plan for possible long-term care services needed in the future.
There is one additional issue to consider when it comes to long-term care.
Most of us would prefer to stay in our own home as we age.
And when it comes to paying for the luxury of preserving our independence only a long term care policy can provide you with the necessary resources to receive care while remaining in your home.
It is possible to “stay in place” without being a burden to your family, provided of course that your long-term care insurance policy provide you with coverage that can pay for both custodial care and home health aide.
What Can You Do
Unlike most other insurance policies, you don’t simply buy coverage.
The key with getting the right LTC policy starts with having a clear plan – and this begins by asking, and answering, some tough questions.
For example:
- How do you plan to spend your retirement?
- What contingencies are in place should you need long-term care?
- How you pay for services?
- Which assets are available for you to use?
- Who is available to take care of you?
With this in mind a well-designed long-term care insurance policy can help you protect your retirement savings, help you maintain your independence, and preserve your family relationships without being a burden to children.
And the first step toward realizing that goal is to speak with an expert today.
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It only takes a few minutes to complete the form, so why not enjoy peace of mind by getting the facts today.
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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.
