Let’s start with the most echoed statement on the web: Americans are living longer but aren’t necessarily healthier, leading to health problems later in life. The U.S. Department of Health and Human Services reports that 69% of people will use long-term care services at some point. And that care comes with a cost: Long-term care costs range from $19,500 per year for adult day care to $102,200 per year for a private room in a nursing home.
Beyond costs, what other arguments circulate regarding buying long-term care insurance?
It can protect your assets. Medicare caps payments for skilled care at 100 days and only pays after meeting specific requirements. Medicaid only kicks in after you spend down your own assets. Private health insurance only pays for doctor and hospital bills. If you plan on any of these options, you’ll most likely spend most of your own money to pay for care, depleting your hard-earned savings.
It can take the pressure off your family. Becoming a caregiver is physically, emotionally, and often financially burdensome. Many people, even family members, aren’t able to make such a huge sacrifice. This is especially true when the caregiver is a spouse or partner also facing their own aging health issues.
It can provide you with care options. Long-term care insurance gives you flexible options when it comes to deciding where to receive care. Many facilities don’t accept Medicaid, so your options may be limited to a no-frills nursing home with shared rooms rather than a more amenity-oriented private nursing home where you’d be more comfortable.
It may come with life insurance protection. Many policies are hybrid policies bundling long-term care coverage with life insurance coverage (or an annuity). This type of policy offers financial protection should you pass away while also giving you the knowledge in knowing that your long-term care needs are covered.
Still have questions surrounding long-term care options? As your dedicated team, we can help you find the right choice for your situation. Reach out to us at (603) 261-3736, and we’ll provide you the information you need to make better-informed decisions.
Bob has a passion for making your money work hard for you. He takes profound joy in ironing out a plan for a long and comfortable retirement, no matter what your current income or level of wealth. With a work ethic second to none, he has a zeal for transforming uncertainty into stable ways for you to protect your future and your family. He knows that the quality of your life you enjoy today can remain as rewarding—or even better—after retirement.
With a strong background in information technology, Carol is instrumental in building operational policies and strategies that keep the organization functioning smoothly. Carol’s organizational skills and her flexibility to jump from priority to priority along with her commitment to customer service makes her an essential part of the Grimard Financial team. When Carol is not working with the Grimard Financial Family, she is a very creative and accomplished photographer.