As inflation continues to be a problem for many average Americans, budgets are stretched to the limit. When you reach your early to mid-50s, you might be looking at other options to help protect your future retirement, and that may include long-term care insurance. When you reach out to long-term care insurance companies and get a quote for a long-term care insurance policy, you may be looking at the numbers and wondering how this can possibly fit into your current budget.
What happens if you don’t get your expected raise next year? What if inflation continues to skyrocket? What if things get financially worse in this country or around the world?
Is long-term care insurance really necessary? This is one of the most important questions a person in this age bracket can ask. Let us answer it for you plainly.
If you have retirement savings and investments, long-term care insurance is crucial.
That’s because, if you need some type of long-term care during those retirement years, you will be paying for it out-of-pocket if you are not insured for it. Almost no primary health insurance policy covers long-term care. Medicaid won’t cover it unless you have exhausted all of your available savings and assets, which can often include many of those savings, even the equity in your primary home.
You could find yourself tapping into your retirement funds to the point where you can no longer stay in retirement in your 70s. Is that what we want to look forward to? Of course not. Most people don’t work their entire career just so they can stop working for a couple of years and then go back to work in their mid-to-late 70s because they have no other choice, all because they had long-term care expenses they never planned on.
So, how do you ‘fit’ this expense into your current budget?
The simplest solution is to look at your current expenses and find the ones that are not really necessary. Do you really have to pay $90 a month for that streaming service? Most everything you have access to, aside from live sports broadcasting or other programming is available on free streaming services or from your local library.
How about all those small expenses that don’t seem to make a big difference at the time, like a coffee out at a local Starbucks or other café? Those $4 or $5 expenses may not seem like much time, but if you add them up over the course of the entire month, by then it’s over $120, easily.
And most of us are spending that multiple times a day on a wide range of expenses. You might want to stop buying everything with your debit or credit cards and switch back to cash. That will help you see where all your money is going and thus the best way to find available funds to make it easy to begin and carry a policy to protect against the rising cost of long-term care in the future.
If you or a loved one are considering Long-Term Care Insurance Companies in Carmel Valley CA, please contact Steve Elliott at Capstone Insurance for an honest discussion about your future and your options. Call today at (858) 350-3161.
- Saving in the Long Run with Long-Term Care Insurance - February 26, 2024
- When Will You Need Long-Term Care Insurance? - February 19, 2024
- Common Excuses People Make to Ignore Long-Term Care Insurance - February 12, 2024