Saving in the Long Run with Long-Term Care Insurance

By Steve Elliott | February 26, 2024 | Comments Off on Saving in the Long Run with Long-Term Care Insurance

One of the primary topics that often comes up when discussing long-term care insurance is cost. Money. The one thing people in their 40s, 50s, and 60s don’t want to throw away is money. They want to save it. They want to invest their money. They want to have it for when they do reach those blessed retirement years. They may not be thinking of needing long-term care or talking with long-term care insurance companies to get more information.

At the same time, though, they may understand there is a risk of health issues arising in the future. You may not realize it at this stage in your life, but when a person is 70, there is a 50/50 chance he or she will need some long-term care, especially if they make it to 80.

Who is going to pay for that? Don’t expect Medicaid to cover it unless you have no assets or until you exhaust all your available assets that can be converted into cash, like the equity in your home. Don’t expect your health insurance to cover it because most policies only cover short-term care, not long-term care expenses.

So, how much could you save over time if you started a long-term care insurance policy while you are still in your mid-50s? This a good question to pose to long-term care insurance companies.

Do you know the cost of long-term care right now?

Long-Term Care Insurance Companies Carlsbad CA - Saving in the Long Run with Long-Term Care Insurance

Long-Term Care Insurance Companies Carlsbad CA – Saving in the Long Run with Long-Term Care Insurance

To answer the question about how much you can save over time with a good long-term care insurance policy, let’s go to one extreme. Alaska. There, the average cost of nursing home care is over $300,000 for one year. Let’s say you or your spouse or other legal dependent had a stroke, aneurysm, or major medical emergency that required significant medical care for two years.

That’s $600,000. With a quality long-term care insurance policy, you would be responsible for the expenses of the deductible period, which might be about 90 days before the policy begins to pay out, for example. After that, you can choose long-term care you or your spouse rely on, whichever is best for them, assuming you choose a quality policy.

Now, to a different extreme. Alabama or Mississippi, for example. There, nursing home care might be $85,000 a year. It’s still quite expensive, isn’t it? For two years, that would cost you $170,000.

Now, how much might a long-term care insurance policy cost you right now?

That all depends on the policy, what it covers, whether it’s bundled with other insurance policies, and a variety of factors. Let’s say you’re somewhere in the average, between $800 a year to $8,000 a year (a Rolls Royce policy).

Let’s say you’re 55 when you start a policy. You pay into it for 10 years. Let’s split the difference and say it is $4,000 a year. You pay $40,000 into the policy. Which would cost you more? Paying out-of-pocket for long-term care.

Is it worth the risk?

The longer you live, the greater the likelihood of requiring long-term care. If there’s a family history of serious health issues, then the odds of needing long-term care may increase.

You just have to ask yourself whether you’re willing to risk your entire retirement, all of your savings and investments, your assets, and your ability to rest easy during these golden years of life when long-term care insurance is the more affordable option that saves you big in the long run.

If you or a loved one are considering Long-Term Care Insurance Companies in Carlsbad CA, please get in touch with Steve Elliott at Capstone Insurance for an honest discussion about your future and your options. Call today at (858) 350-3161.

Steve Elliott
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