Whether you realize it or not, inflation is a nonstop freight train. There’s no way to stop it. There might be a way to slow it down, but with all of the factors that have come into play during the past several decades, it’s unlikely it will be tempered. Some industries are more impacted by inflation than others, such as long-term care.
Every type of long-term care will cost more in 10 years than it does now. In many respects, that’s true of almost every product or service, but the rate at which long-term care is likely to increase over the next 10 to 15 years is going to far outpace many other industries, including retail.
That’s because of the demand for these services.
When the federal government began placing increased pressure on hospitals to reduce their readmission rates, it meant other long-term care options would become important, not just to provide care and support for patients discharged from the hospital, but also for aging seniors who could be better served at home rather than in a facility.
The baby boomer generation is retiring and that means the demographic of seniors as a percentage of the population is going to increase over the next couple of decades.
By 2040, 20 percent of the population will be considered seniors. With this increase in the population of older Americans, there’s also going to be an increase in the need and demand for long-term care support services.
Is there any protection against these increased costs?
No one can accurately predict what inflation is going to do to the prices in any particular industry or niche, but a person who is diligently saving for retirement can protect his or her family from some of these costs.
Long-term care insurance is a valuable asset for those individuals in their late 40’s, 50’s, or early 60’s who understand the rising cost of long-term care and how it could impact their retirement portfolio and savings in the future. With this rise in cost for long-term care also comes the rise in cost of the premiums for long-term care insurance.
Keep in mind, Medicaid will not cover long-term care costs until all available assets have been used up first. That means an aging senior would have to essentially use all the equity in their house or even sell their home (or even take out a reverse mortgage) to pay for long-term care costs before Medicaid would begin covering them.
In order to help avoid this or reduce the impact this might have, long-term care insurance becomes an invaluable asset.
If you or a loved-one are considering Long-Term Care Insurance Premiums in San Diego 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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