When you are in your 20’s and 30’s, you don’t often think about end-of-life insurance policies. Sure, you might have a life insurance policy, especially if you start a family, but the majority of people in this age group aren’t thinking that far down the road, outside of saving for retirement.
And, even then, their focus is generally mild. They might regulate a small percentage toward a 401(k) retirement plan, but not give the future of those years much thought.
They certainly aren’t thinking about long-term care insurance.
The rising cost of long-term care
If you have been paying attention to long-term care, you understand that demand for these services is increasing. The baby boomer generation is retiring and that is placing increased pressure on short and long-term care providers and services.
That means the price is going to increase. Couple that with inflation which is expected to rise at a much higher pace the deeper the nation falls into debt, and you have the perfect recipe for disaster, especially for those who saved for retirement, but never planned on having to pay for long-term care out-of-pocket.
Won’t Medicaid cover it?
Medicaid is only going to provide limited, short-term support to qualifying individuals who need some type of care for a few weeks or couple of months. If you expect Medicaid to cover long-term care expenses, you would have to use up all of your available assets first.
That means selling your home, possibly a weekend getaway or vacation rental, and even other properties you might own and are renting out.
You would also have to use the bulk of your savings up before Medicaid would kick in and start covering those expenses.
The average cost of nursing home care
As a benchmark, nursing home costs are skyrocketing. In Alaska, for example, you could pay more than $300,000 a year for nursing home care. Other states aren’t nearly as expensive, but rates are certainly going up.
If that number seems staggering, a shock to the system, so to speak, you really need to look into long-term care insurance now.
This is an insurance policy that, if you begin it in your early to mid 50’s, could provide an exceptional cushion during those golden years when you should be enjoying life. You can’t predict what’s going to happen 10 years from now, much less a month or a few days ahead, but you can prepare for the possibility of having to pay long-term care expenses on your own.
If you or a loved-one are considering Long-Term Care Insurance Cost in Carmel Valley CA, please contact Steve Elliott at Capstone Insurance for an honest discussion about your future and your options. Call today (858) 350-3161.
- Can You Use Long-Term Care Insurance for In-Home Care? - September 27, 2023
- ‘Best’ Way to Think About Long-Term Care Insurance Policy in Your 50s - September 18, 2023
- How Can You Know If Long-Term Care Insurance Is for You? - September 13, 2023