Just a few, short, blissful months ago, nearly every ‘significant’ economist or financial so-called ‘expert’ was touting a great jobs report, a strong economy, and that there was almost zero risk of a recession in the next several years. Even when inflation was sailing forth and gas prices started to rise and settle in well above four dollars a gallon nationally, those same economists continued to tout that the American economy was doing fine, impervious to talk of recession. Maybe that was the comfortable timing for you to talk with long-term care insurance companies.
Now, though, those same so-called experts are almost in unanimous agreement: a recession is not just possible, but highly likely and just around the corner.
With this dire warning, should Americans begin cutting out extras? And, if they do, should long-term care insurance be one of those so-called ‘extras’ that older Americans should let fall by the wayside, at least for now?
What is long-term care insurance? Have you talked to long-term care insurance companies?
It’s an insurance that can pay for long-term care in the event you or another dependent requires it in the future. Usually, that other ‘dependent’ would be your spouse or partner. Somebody covered under the same policy.
You may not think it’s important when you’re in your late 40s or 50s or maybe even your early 60s, especially if you’re in good health, stay in shape, and pay attention to what you eat. However, the requirement of long-term care may come on just about anyone at any time. It is a good idea to discuss your options with long-term care insurance companies.
You could be involved in an automobile accident on your way home from work next week. Your spouse could be knocked over at the store, at the mall, right at the top of the stairs, causing serious injuries.
You could suffer an unexpected heart attack or stroke, even though you are the epitome of good health, diet, and exercise. All of those things could require long-term care.
Are you able to afford a nursing home for one year?
Most people don’t have any clue if they would be able to afford it. That’s because they have no idea how much a nursing home costs. Plus, many people incorrectly assume their health insurance is going to cover those expenses. They don’t.
Most health insurance policies only cover short-term care. Once a person requires long-term care, it’s up to them to pay for it. And Medicaid is only going to cover one type of long-term care, mostly nursing homes, and only after that person uses up most of their assets and savings. Sometimes, that includes the value of their house.
Don’t forgo an important insurance policy for the short-term.
Sure, you may not need long-term care in the next couple of years as this recession settles in and lingers for a long, long time. That doesn’t mean you won’t.
When the economy turns south, and you have investments and savings meant for your retirement, protect them with a long-term care insurance policy. There are plenty of other areas of your life, your financial life, where you can trim expenses to make up the difference. This is simply one you don’t want to let go. Not now.