Reasons NOT to Ignore Long-Term Care Insurance in Retirement Portfolio

How important is it to focus on your retirement portfolio when you are in your 40s or early 50s? That all depends on several factors, and most people who are planning for retirement will say it is at least moderately crucial. There are many aspects to a retirement portfolio, including your investments, pension if you are expecting one, Social Security, and even some types of insurance. Talking to long-term care insurance companies can provide added insight to your planning.

Long-Term Care Insurance Companies Oceanside CA - Reasons NOT to Ignore Long-Term Care Insurance in Retirement Portfolio

Long-Term Care Insurance Companies Oceanside CA – Reasons NOT to Ignore Long-Term Care Insurance in Retirement Portfolio

Yes, life insurance is vital for those who have dependents, like a spouse, but what other insurance might also be essential? Long-term care insurance.

Why should you focus on long-term care insurance? Let’s look at four reasons why it’s important not to ignore this vital type of insurance when you are working on your retirement portfolio, making adjustments, or refining it as you get closer and closer to that blessed retirement age.

Reason #1: It can save you a ton of money in the future.

If you don’t know how much long-term care costs are now, you would be surprised. Depending on where you live, you might be looking at $60,000 a year to well over $300,000 a year.

Yes, it depends on what type of long-term care you need, such as in-home care, assisted living, or nursing home care, but the cost is only going to increase. It’s not just inflationary pressures that are making it rise so fast, but also supply and demand economics.

The baby boomer generation is retiring and this group of people will continue to retire for the next 10 or 15 years. By then, seniors will count for at least 20% of the entire US population. When you take into account that 50% of people over the age of 65 will most likely require some type of long-term care in the future, you begin to realize just how expensive it might get.

Reason #2: It helps to protect your other investments.

Did you know that if you needed long-term care during your 70s or 80s, for example, Medicaid isn’t going to cover that if you have savings and assets? Some of those assets may include the equity you have in your home.

If you need long-term care for years and years due to an accident, stroke, or some other medical crisis, you may have to exhaust all of your other investments, pension, and savings before Medicaid will start covering it, but you won’t have to worry as much with long-term care insurance.

Reason #3: Nearly half of seniors will need long-term care.

As we mentioned, almost half of seniors will require some type of long-term care in the future. While you might feel great and have a wonderful family history of very few major health issues, that doesn’t mean you are free and clear of the need for the potential need for long-term care in your retirement years.

Don’t rest on the assumption you will never need it because half of the people you will know during those golden years of life will require long-term care. You just might be one of them.

Reason #4: Don’t make the mistake of assuming Medicaid will cover those expenses.

As mentioned, Medicaid is only going to cover certain types of long-term care, most notably nursing home care in most states, and only after you have spent the entirety of your savings and assets. On top of that, many people incorrectly assume that their primary health insurance (if they have it during those years of life) will cover these expenses. However, most insurance policies only cover short-term care.

Hopefully, you realize through these four important and compelling reasons why long-term care insurance should be a part of your retirement portfolio and planning.

If you or a loved one are considering Long-Term Care Insurance Companies in Oceanside CA, please get in touch with Steve Elliott at Capstone Insurance for an honest discussion about your future and options. Call today at (858) 350-3161.

Steve Elliott