As most people move into their 50’s, they will be looking forward to retirement, trying to check their portfolio and make sure they have enough to enjoy those Golden Years. There are many moving parts in most lives for millions of Americans. While 78% of Americans are still living paycheck to paycheck, some will be relying on Social Security, their 401(k), and other investments for retirement. Discounting long-term care insurance at this age could be a crucial mistake that leaves some people struggling just to get through their 70’s or 80’s.
What is long-term care insurance?
This is a form of insurance that helps to provide financial support in the event a person requires any type of long-term care (that is covered under the policy). It might be home care, assisted living, nursing home care, memory care, or something to that effect.
The cost of long-term care is continuing to increase. In some aspects, it can leave families completely devastated financially in the event a parent, spouse, or somebody else they care about requires long-term care. For example, currently nursing home care costs an average of $75,000-$85,000 per year, depending on where a person lives in the country. If that increases at its current pace, the cost could well exceed $115,000-$120,000 per year.
For just two years of care in a nursing home, that could far outweigh any retirement savings most Americans have when they reach that age and finally leave their employment behind.
During a person’s early 50’s is one of the best times to begin a long-term care insurance policy. That’s because they are often healthy enough not to incur some type of increase in the monthly premium and, since they aren’t yet close to retirement age where the vast majority of people ultimately depend on long-term care, the monthly premiums are relatively affordable.
With a quality insurance company, those premiums may be able to be locked in, thus guaranteeing a reasonable rate moving forward. More importantly, if somebody waits until they are 62 or 65, for example, they may be disqualified due to some health issue or other risk factor that has crept into their life. If that happens, they would either need to completely exhaust all of their financial assets, including their savings before the federal government will step in and provide some assistance through Medicare and Medicaid or lean on family for help, but then the government decides what type of care (often a nursing home).
The early 50’s is the optimal time for a person to begin a long-term care insurance policy.
If you or a loved-one are considering Long-Term Care Insurance Cost in Oceanside CA, please contact Steve Elliott at Capstone Insurance for an honest discussion about your future and your options. Call today (858) 350-3161.
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