Many people worry about what the future may hold for them. We are constantly admonished to save for retirement, invest in our 401(k), and put more money aside for those Golden Years. Still, despite our best efforts, what we don’t plan on or expect to happen could completely derail those senior years. April is Stress Awareness Month and it’s a good reminder that we do have some control over our fiscal health that can help us reduce stress later on.
Long-term care costs continue to increase and many people incorrectly assume that once they reach retirement age Medicare and Medicaid would cover these expenses. That is simply not true, at least not in the way many Americans assume.
What will Medicare and Medicaid cover?
Depending on one’s coverage, they may enjoy good benefits for healthcare after they reach 67 years of age. Because of the fiscal situation in this country, retirement age could very well rise to 69 or 70 within the next decade or so. Whether it does or doesn’t is basically irrelevant to this discussion, though.
If a person requires extended long-term care, Medicare isn’t going to provide coverage, neither would Medicaid, and not until and unless that senior has used up all of his or her personal assets. This includes their primary residence.
In short, before Medicaid would cover nursing home care for an aging senior, he or she will be required to pay for those services out-of-pocket, including possibly taking out a reverse mortgage or selling their home to liquefy those assets. Only then, once all assets are used up, would Medicaid begin covering those long-term expenses.
This is why long-term care insurance is so critical.
People simply don’t realize the impact long-term care could have on their financial health and future. In some states, for example, nursing home care can exceed $300,000 each year.
That number is staggering and far more than most people will actually have saved up by the time they reach retirement age. In just one year, a stroke, accident, heart attack, pneumonia, or other serious ailment could completely wipe them out financially.
Long-term care insurance helps to protect against these circumstances. And, if somebody assumes they will never need long-term care, the risk increases with age. In fact, over half of seniors today will require some type of long-term care in the future.
The best anyone can do who has been diligent to save for retirement is to look into companies that offer long-term care insurance. The best time to begin a policy is in your early to mid 50’s, but even if you’re approaching 60 or in your 60’s already, it’s never too late to inquire. This type of insurance could very well save you financially during your Golden Years, the most critical time of your life fiscally.
If you or a loved-one are considering Long-Term Care Insurance Companies in San Diego CA, please contact Steve Elliott at Capstone Insurance for an honest discussion about your future and your options. Call today (858) 350-3161.
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