One of the more common things people complain about when it comes to paying for different types of insurance, saving for retirement, or investing in a 401(k) is they “don’t seem to have enough money at the end of the month for it all.” Long-term care insurance is invaluable for people in their 50s and 60s, yet only a small percentage actually carry this type of insurance. Most don’t value it the way they should. And, for those who recognize its value and realize now is the time to begin starting a policy, they never seem able to scrape enough money together to afford the long-term care insurance cost.
There are many expenses that get in the way.
You got your mortgage, taxes, property taxes, investments, savings, food, the rising cost of that and gas and so much more, maybe college tuition, hobbies, that café double latte you enjoy every morning on your way to work, etc.
Before you know it, half the month is gone and you have only a couple of hundred dollars left from that last paycheck. Everything else has been either devoted to bills, savings, or investments. You can’t possibly reconcile your desire to carry long-term care insurance with the reality that you just don’t have enough money to do it.
Make long-term care insurance cost a top priority.
It should be as high a priority as life insurance. You probably make sure your life insurance, health insurance, and other essentials are paid first out of your paycheck, right? Maybe even five or seven percent of your paycheck is devoted directly to your 401(k) or other investments, taken out before you even get a chance to spend it.
Do the same thing for your long-term care insurance policy. Make sure it comes out immediately, as soon as your payment comes in for the month or the week. Don’t touch anything until that is paid first.
Isn’t that a little extreme?
That depends on your point of view. Let’s look at it this way: if you or your spouse or other dependent is involved in an accident, health emergency, or other crisis and requires long-term care, do you think your primary insurance is going to pay for that? Do you honestly think Medicaid will cover it?
The first point: no. Most health insurance policies do not cover long-term care. They cover short-term care, which can last for a few weeks. That’s it. As far as Medicaid or Medicare is concerned, that will only happen when you’re at or beyond official retirement age (67 as of the time of this writing) and have used up the bulk of your assets, which includes the value in your primary residence, and your home equity.
So, how much might it cost? It depends on the elder care you choose, which can range from about $50,000 a year to well over $300,000 annually.
Are you able to afford that? Because, if you can’t figure out how to pay long-term care insurance cost — a highly affordable insurance policy the sooner you started — each month, how in the world are you going to pay for long-term care?
Get it paid before you take anything else for yourself or your other bills. You’ll thank us later.
If you or a loved one are considering a Long-Term Care Insurance Cost in San Marcos 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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