You might not be thinking much about long-term care, especially if you are in your 30s or 40s, but by the time you’re in your 50s, you should be thinking about it. Maybe you don’t know anybody who has required long-term care. Have you known a single person in your family or close network of friends who have required some type of extended care or even end-of-life care? There’s a lot to know about long-term care that Americans simply don’t know. That’s why so many of them never consider long-term care insurance. They have their 401(k) or pension program, are thinking about Social Security when they retire, and basically focus on what they will do during those retirement years.
Yet, without proper insurance to protect your assets and savings, and investments, you could find yourself on the hook to pay for long-term care out of your own pocket. If you did that, you could find yourself having to return to work or simply struggling to put food on the table in your 70s, 80s, or 90s.
Let’s talk about three key things that are important to know when it comes to long-term care, things that could change your perspective on long-term care insurance for this, too.
1. The current cost of care.
Did you know that full-time in-home care can cost you between $45,000 and $55,000, on average? Depending on where you live, that might be a little higher or lower. Keep in mind that’s for full-time care, 40 hours a week, in other words.
What if you needed around-the-clock care? What if you need in-home care for six months or a year or more? That is going to be more than what we quoted here.
What about assisted living? You’re talking about $75,000 or more, on average. In some states, you are easily looking at six figures, especially for more upscale assisted living communities.
And nursing home care? $85,000 a year, on average. Again, in some states, you’re easily looking at another six-figure number. In Alaska, for example, $300,000 a year is the average for nursing home care.
2. The different types of care.
We named in-home care, nursing home care, and assisted living. These are the more common types of elder care, but there are varying degrees and types of care available.
Would you want somebody else to decide what type of long-term care you received? Would you want a bureaucrat whom you will never see or talk to saying you have to go to a nursing home when you’d rather be at home and comfortable? Of course not.
Without long-term care insurance, though, somebody else is probably going to decide the course of your long-term care.
3. That most insurance companies don’t cover long-term care.
This is often the biggest surprise for people. They simply assume that their primary health insurance provider is going to cover long-term care. Most of them only cover short-term care or a few weeks of it. Beyond that, it’s your responsibility.
Let’s not even talk about Medicaid covering it because that’s only going to cover one type of long-term care in most states (nursing home care) and only after you’ve exhausted all of your available assets, including the equity in your primary home.
Now that you know a few more facts about long-term care, hopefully, you realize the value of this type of insurance.
If you or a loved one are considering Long-Term Care Insurance in Del Mar 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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