With an estimated 10,000 baby boomers retiring every day in the U.S., individuals and families are forced to grapple with the realization that retiring, especially for those in need of long-term care, is expensive. According to data compiled by the U.S. Department of Health and Human Services, the cost of living in a long-term care facility averages more than $92,000 per year for a private room. Depending on the state where you live, the level of care you require, and other factors, that amount could be even higher. There are a number of ways that retirees pay for long-term care, from self-funding to government programs, and purchasing long-term care insurance is one of those options. If you anticipate needing long-term care in the future, here are some of the benefits of investing in long-term care insurance to help you decide which payment option works best for you.
Protecting Your Assets
If you don’t have a plan to pay for long-term care in the future, you could be in for a bumpy ride during retirement. Sure, you may be healthy now, but that can change rapidly. An injury, illness, or decreased mobility due to old age may require specialized care, and without long-term care insurance, you might have to pay for it out of pocket. Those costs can pile up quickly, depleting your retirement savings, and forcing you to sell off valuable assets just to make ends meet. If you were planning on leaving money to family, friends, or charity, those funds can quickly dry up if you need long-term care.
Long-term care insurance can help you pay for some of the expenses associated with receiving skilled care so you won’t be forced to dip into your savings, leaving you with money to enjoy your retirement and money to pass on in the future.
More Options for Your Care
Without long-term care insurance, you may be at the mercy of programs like Medicare and Medicaid. These programs generally don’t offer as much coverage as private long-term care insurance plans, so you may be limited in the types of facilities you can stay in and the amount of care you can receive. These are decisions that can have a huge impact on your quality of life in retirement; wouldn’t you rather be making them on your own?
Having Access to the Care You Need
Someone who requires long-term care may have specific medical needs. Some people may be able to get along fine with in-home skilled care; others may need 24-hour care in an assisted living facility. Conditions like Alzheimer’s disease may even require specialized memory care and other services. Are you prepared to shoulder the costs associated with that type of care? With long-term care insurance, you can be sure you’ll have access to the type of care you need, regardless of the cost.
Do Your Homework on Long-Term Care Insurance
While these are a few general benefits of investing in long-term care insurance, it’s important to recognize that every policy is different. Each one offers different periodic benefit amounts, options for care, maximum benefit amounts, and more. Before you decide on a policy, it’s a good idea to do your own research and speak with a Retirement Phase Advisor who can tell you more about the types of policies available. If you have questions about long-term care insurance, Crash Proof Retirement® is always here to answer them. Get in touch with us today to speak with a Retirement Phase Advisor and don’t forget to tune in to the Crash Proof Retirement® Show to learn about long-term care insurance and other financial vehicles that can help you be better prepared for retirement.