Just about everything costs more today than it did a couple of years ago. That’s inflation. While inflation has been high (abnormally high, for that matter) these past few years, there are other factors than just inflation at play when you consider the cost of long-term care and long-term care insurance cost.
One of the most significant involves supply and demand economics. When demand for a product or service increases, that generally drives the price up. That has been happening as well in large part thanks to the baby boomer generation of Americans now retiring.
As more seniors comprise a greater portion of the United States demographic, and as elderly men and women live longer, on average, once they reach a certain age, such as 70, it means a greater chance of each senior requiring some type of long-term care in the future.
For example, a person 70 years of age will have a 50/50 chance of requiring some type of long-term care in the future. The older they are, the more likely they will need some form of long-term care.
How can you afford long-term care in the future?
Let’s say you’re around 50 or 55 years of age right now. Take a look at the average cost of different forms of elder care. Some types of in-home care could cost you $55,000 for full-time support. Nursing homes might cost an average of $85,000 a year, but in some states, the average cost is well over $300,000.
Could you afford that? What would happen if you or your spouse or other legal adult dependent required some type of long-term care?
If you’re like most Americans, you assume your primary health insurance provider will cover it. Or, if you’re thinking about needing long-term care after you’re 67, that Medicaid would cover it.
First, most primary health insurance policies do not offer long-term care coverage. They cover short-term care, which accounts for about a couple of weeks, but that’s it. Anything beyond that you have to pay out of your own pocket.
Second, Medicaid, that only covers a certain type of elder care, most notably nursing home care in most states, and only after you have exhausted all your available savings and tangible assets, which can often include your primary home.
Now, what would you do to start paying for long-term care if you suddenly required it? Knowing these basic facts, would you be able to afford it for very long?
That probably depends on the type of elder care and the extent to which you or your spouse require support.
You don’t have to worry about that with long-term care insurance.
Long-term care insurance can help to protect you and your other legal dependents, most notably a spouse, in the future should either one of you require long-term care. You get to choose the type of elder care you want, whether it’s home care, assisted living, or something else.
As the cost of everything else increases, your dollar is not going to go as far in the years ahead. With increased demand for long-term care services, it’s also going to drive up the price, so wouldn’t it be nice to know you have a great insurance policy in your corner ready to serve you and your spouse best?
If you or a loved one are considering Long-Term Care Insurance Cost in Encinitas CA, please contact Steve Elliott at Capstone Insurance for an honest discussion about your future and your options. Call today at (858) 350-3161.
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