3 Reasons Why You Need to Plan for Long-Term Care Expenses

3 Reasons Why You Need to Plan for Long-Term Care Expenses

As difficult as it may be to accept, we are all likely to suffer from health issues during our retirement, and those issues could require skilled care at home or in a nursing facility. Do you know how you will cover the costs associated with receiving skilled care? Do you have enough money saved? Will Medicare cover your long-term care expenses? If you don’t know the answers to these questions, it’s time you learned more about asset-based long-term care contracts from the financial life insurance industry. Here are the top 3 reasons why you need to plan for the greatest risk to your retirement nest egg, long-term care expenses. 

1. It is Very Likely You Will Need Long-Term Care at Some Point in Your Life

According to statistics gathered by the U.S. government’s Administration for Community Living, there is a nearly 70% chance you will need some form of long-term care after reaching age 65. This could include receiving skilled care at home or staying in a skilled care facility like a nursing home. Even if you have a healthy nest egg saved up, failing to plan for long-term care expenses could easily deplete your savings and leave you with nothing to pass on to your heirs. If you think you can get by without making a plan for long-term care expenses, think again; the likelihood of you needing skilled care is much higher than you might think.

2. Long-Term Care is More Expensive Than Ever 

Genworth’s most recent Cost of Care Survey revealed that the average cost of long-term care across the country can be as much as $108,405 annually. In some states, that cost can be even higher; for example, in Pennsylvania, you can expect to pay $133,882 each year for a private room in a nursing facility. While in-home care is a more affordable option, it will still cost an average of $61,776 per year to receive care from a home health aide. When you consider how much life expectancies have increased over your lifetime, you must plan for having 5-10 years or more of long-term care expenses.

3. Medicare and Private Health Insurance Won’t Cover Long-Term Care

If you think that Medicare will cover your long-term care expenses, you would be mistaken. While Medicare will cover your first 20 days in a skilled nursing facility, a copay of $204 per day will be required from days 20-100, and that’s if Medicare approves your stay. After day 100, you are on your own. Private health insurance isn’t much better. While every policy is different, most do not provide any long-term care coverage, and if they do, it will only be under very specific conditions. If you are relying on your health insurance to cover long-term care, you will be in for a rude awakening when it comes time to pay your long-term care bills.

Covering Your Long-Term Care Expenses with No Monthly or Annual Premiums

The cost of long-term care is the biggest threat to your retirement savings; it’s expensive, you will likely need it, and Medicare and private health insurance aren’t as effective in covering it as you might think. If you want to be sure your long-term care expenses will be covered, you could purchase traditional long-term-care insurance. Unfortunately, if you want this type of coverage, you will have to pay hefty recurring premiums. What if you could have the long-term care coverage you need without having to pay a monthly or annual premium? At Crash Proof Retirement, we know there is a better way.

By leveraging your qualified assets like IRAs and 401k plans, you can achieve multiple goals. With a leveraging asset contract, you can triple the benefit value of that asset, triple its tax-free death benefit when you pass away, and cover your long-term care expenses without ever paying annual or monthly premiums. 

Leveraging your assets also provides additional benefits. Many of these contracts allow you to access some or even all of your funds to cover emergency expenses unrelated to long-term care. Your loved ones will also appreciate that you made a plan for your long-term care because they won’t have to act as your caregivers or shoulder the expenses related to your care. One of our favorite aspects of today’s leveraging asset contracts is that they are easier to qualify for than ever before. No matter who you are or what challenges you are facing, you owe it to yourself to look into asset-based long-term care contracts.

If you would like to know more about leveraging assets to cover your long-term care expenses, call Crash Proof Retirement at 1-800-722-9728 right away. In addition to educating you about all the benefits of leveraging assets, we can also teach you about the exclusive Crash Proof Retirement System. When you use the proprietary Crash Proof Retirement System to save for retirement, you can achieve guaranteed income for your golden years without the risk and fees associated with traditional, securities-based retirement savings vehicles like stocks, bonds, and mutual funds. Call us today for your free financial checkup to learn more about your options for retirement planning in Bucks County, PA, and surrounding communities.