Nobody likes to think about themselves or a loved one losing the capability to take care of themselves. Long term care expenses are rising and if you end up having to pay for care out of pocket, it could put a serious dent in your retirement nest egg. According to the Genworth Cost of Living Survey 2019 , the national median monthly cost of a private room in a nursing home is $8,517. The same survey reports the national median monthly cost of in-home health aide services is $4,385. Most health care and disability insurance policies do not cover this kind of care. While it’s not the right decision for everyone, long term care insurance can help you afford nursing home care and other forms of long term care without having to drain your retirement savings.
What does long term care insurance cover?
“Long Term Care” describes services that assist a person with daily activities such as eating, bathing, getting dressed, and moving around. Different policies cover different forms of care.
These are expenses that LTC policies often cover:
● Nursing Home Care
● Assisted Living Facility Care
● In-Home Care
Who should buy an LTC policy and when?
Long term care insurance tends to be fairly expensive. Lower-income individuals and married couples may be able to cover long term care costs with Medicaid. People with a lot of extra money saved may be able to cover their own long term care costs. The people who fall somewhere in between may want to consider purchasing an LTC insurance policy. The American Association For Long-Term Care Insurance states that the optimal age to purchase an LTC policy is somewhere in your mid-50s because you are more likely to still be in better health and you can find policies that allow you to buy some coverage now and add to it in future years, if necessary.
There are some pre-existing conditions that will most likely disqualify you from obtaining coverage. People with Alzheimer’s Disease, Parkinson’s Disease, Cystic Fibrosis, Hemophilia, and a variety of other conditions are likely to be denied. As you get older, the cost of coverage will increase and your chances of being denied coverage will also increase. The best way to find out if long term care insurance is right for you is to speak with a knowledgable agent to assess your unique personal circumstances. Your chances of needing long term care services are considerable. You may be taking a risk by counting on your savings to take care of these expenses. Contact Absolute Retirement Solutions today to learn more and find out what policy options you have. Insurance product guarantees are backed by the financial strength and claims-paying ability of the issuing company.