Long-term care may not seem necessary at this stage in your life. You might be in your 40s or 50s and aren’t even thinking about what might happen in your 70s or 80s. Sure, if you’re responsible and have been saving for retirement, you may have a life insurance policy, but what about a long-term care insurance policy? Is that something you have to seriously consider now?
A lot of people have a wait-and-see approach when it comes to long-term care needs. They may have an aging parent, somebody in their 80s or 90s, who ultimately needs nursing home care at the final stages of their life, but what about them?
Do you — the person who might be between 50 and 55, for example — really need to start thinking about long-term care at this stage in your life? You should.
Just because you may not need long-term care in the next couple of years doesn’t mean you should completely ignore a long-term care insurance policy. You see, the ‘sweet spot’ for long-term care insurance is right around 55. After that, the policy cost may increase. Or, depending on your health history or family history of health issues, you could be denied coverage.
Even if you’re in your mid to late 40s, it’s not too early to begin planning for long-term care insurance. That doesn’t necessarily mean you have to pick up a policy right away, but you should dig in, research different options, and determine what’s going to be best for you and your other dependents, most notably your spouse.
How much will long-term care cost?
That’s a big question mark at this stage in society. With the baby boomer generation retiring, it’s placing increased demand for long-term care services on the entire industry. Basic economics tells us that increased demand along with limited supply is going to increase the cost.
Plus, we have inflationary pressures that are incredibly high, forcing many long-term care facilities and providers to increase their rates. That being said, the average cost of in-home care for full-time support is around $45,000 to $55,000 annually. Assisted living, on average, could cost you $75,000 to $85,000. Nursing home care can cost $85,000 and up, on average.
Keep in mind that that is an average; some states average much higher rates for long-term care expenses.
How quickly could you afford long-term care out-of-pocket?
Avoid the common mistake too many people make and assume that long-term care expenses are going to be covered by Medicaid or your primary insurance. In most cases, it won’t. Medicaid only covers long-term care after you have used all your available savings and assets, and most states only cover nursing home care.
That means you have to exhaust most of your life savings and other assets, including the equity in your home if you own one. So, how much could you really afford out-of-pocket?
If you don’t want to find out, now is the time to begin thinking about a long-term care insurance policy. Sure, you can wait, but at what risk?
If you or a loved one are considering Long-Term Care Insurance in San Diego CA, please contact Steve Elliott at Capstone Insurance for an honest discussion about your future and your options. Call today at (858) 350-3161.
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