Most people are now quite aware of inflation. It appears as though we are now heading into what some might consider hyperinflation, or an accelerated rate of inflation. The cost of goods and services is rising and is about to rise even more and faster. With that rise in inflation, long-term care costs will also increase, so too will long-term care insurance costs increase.
Most people don’t think much about long-term care costs until they need it. Usually, it’s an elderly parent, grandparent, or the loved one who needs it first, but that doesn’t change the reality: most of us have no idea how much it costs unless it impacts our family directly.
Depending on the type of long-term care you or somebody in your family may need, it could be incredibly expensive. In fact, if you live in Alaska, for example, and require nursing home care for an extended period of time, that could cost you over $300,000 annually.
Most people don’t have homes paid off that could cover it. That’s why long-term care insurance is so important, especially with the rising cost of care.
What can a policy offer?
Security. That’s basically what it can do. It’s very similar to life insurance, if you think about it in that way. Every one of us is mortal. We are all going to die. Because of that, the right life insurance policy can be invaluable at helping protect your family financially when you pass away.
You may not need long-term care at some point in the future. Your spouse might not need it. Another dependent upon you might not need it. However, that doesn’t mean it isn’t important and invaluable.
A long-term care insurance policy, depending on the type you purchase, would generally provide coverage for various types of long-term care. This may include home care, assisted living, independent living, and nursing home care, among others.
After a deductible, there will usually be a couple of months when you might have to pay for that care out-of-pocket or your health insurance provider would pay for it, then the long-term care insurance policy will begin paying out.
Can you choose the type of long-term care you receive?
Again, depending on the policy, you
most certainly can. Not all policies will provide this option, which is why you need to shop for the right one depending on your financial needs, family history, and more.
If you prefer to remain home, a home care aide could be covered by long-term care insurance, at least for up to three years, for example.
Right now, the average cost of home care could be anywhere between $45,000 and $55,000 per year. That is for full-time in-home care support. In 10 years, as the baby boomer generation continues to retire and more people prefer to age in place, that number could dramatically increase or even double.
Most people couldn’t pay for that themselves. And Medicaid will not cover any type of long-term care until a person uses up all of their available savings and assets first, which includes the equity in a home.
Now you see why long-term care insurance can be so crucial to protecting you and your family in the future as hyper-inflation takes root.
If you or a loved-one are considering Long-Term Care Insurance in San Marcos 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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