Long-term care insurance could very well protect your financial future. Even though according to a growing chorus of financial experts and economists, we may very well be entering recession waters, and you might be worried about the here and now. If you have been saving for retirement, there is something you might not have accounted for that could completely wipe you out financially during those golden years. It’s the prospect of long-term care. Getting a long-term care insurance quote could help determine how to spend your savings.
What is long-term care?
It’s ongoing care that generally lasts or is required for more than a few weeks. Most health insurance policies will cover short-term care, most commonly in the hospital, but they won’t cover any type of long-term care, which may include a nursing home stay.
Medicaid is only going to provide coverage for one type of care, most commonly nursing homes, but only after all of your available savings and assets are used up. Those assets can and often will include the equity in your house.
The federal government is simply not going to pick up the tab for somebody who has saved diligently their whole life with the intent of enjoying those retirement years.
That may sound completely unfair, but that’s the reality. So, if you or your spouse or any other person who is dependent on you legally requires long-term care in the future, you might very well have to pay for that out-of-pocket.
How much does long-term care cost?
Any person who has never needed to look into the cost of something probably doesn’t have a clear understanding of the expense associated with it. It doesn’t matter if you’re talking about lawn care, taking a cruise, or paying for long-term care.
If you’ve never done this or haven’t had to get involved with it for at least 10 or 20 years, you may be surprised by the staggering numbers.
In some states, spending the year and a nursing home could cost over $300,000. The average cost in the United States has exceeded $85,000. For full-time in-home care — meaning 40 hours a week, not even counting on somebody being there around-the-clock — you could be footing the bill for more than $55,000.
Thinking about assisted living for your future? The average cost is $75,000, and there are many facilities that charge way more than that for convenience, luxury, amenities, activities, and more.
Can you afford long-term care insurance after you have received a long-term care insurance quote?
If you are in your mid-50s, there’s no more time to wait. This is the optimal time to start a policy based on your age. However, if there’s a family history of certain medical issues or you’ve been dealing with chronic health issues for some time, the price of the policy may increase. This can be figured out once you have received a long-term care insurance quote.
The real question should be: can you afford not to have long-term care insurance? You might be able to. However, are you a gambling person? Because if you have retirement investments and savings and think you’ll be okay and won’t have to pay for long-term care … ever, you are really rolling the dice. And that’s not good, sound financial advice.