![]() ![]() Long-term care insurance also allows you to live in your home longer because it pays for things like in-home care and home modifications (think wheelchair ramp, etc.).Īnother benefit is that your family and friends won’t be burdened with every aspect of your care. Or they’ll have to dip into their savings or retirement funds to pay for it-not a good plan. The reality is most Americans simply will not be able to afford the sky-rocketing costs of long-term care. In fact, it’s a bargain considering what you get in return. Yes, long-term care insurance is definitely worth it. Is Long-Term Care Insurance Worth Buying? If you aren’t either of those people, however, choosing to buy long-term care insurance is a really smart idea. Connect with a trusted pro to make sure you have the right coverage. Or if those of you who aren’t self-insured love the idea of potentially living out your last days without a penny to your name and at the mercy of the government, passing up long-term care insurance is also a good option. If your net worth is around a million dollars (not including the value of your home) you can (and probably should) skip it. No one is required to purchase long-term care insurance. Milliman Long Term Care Insurance Survey 7 Am I Required to Purchase Long-Term Care Insurance? Plus, your kids won’t be burdened with huge payments for your care. If you or your spouse becomes ill, you can afford the care you need without raiding your retirement savings. It offsets the increasing costs of long-term care as you age and gives you peace of mind because it protect your savings you worked so hard to build. Long-term care insurance is the best solution. If the average price tag of long-term care is $324,900, you can see how this can go south-really fast. The average baby boomer only has $202,000 saved for retirement. So who needs long-term care insurance? Anyone who’d feel uncomfortable cutting a check for $250,000–300,000. And while Medicaid-the government program designed for people who truly don’t have any money-will cover some long-term care expenses, it should never be your first choice because you’ll have to spend all your assets before you receive help. Now, you might be thinking: What about government programs? Can’t they help? Don’t make the mistake of believing Medicare will cover long-term care costs. That means they’ll end up needing on average $324,900 in care! 4 And while regular health insurance won’t cover these costs, long-term care insurance will. The average person will receive another $204,000 worth of unpaid care from their families. 3 But they add that doesn’t represent all the care that person will need. The average cost of just one month in a nursing home in the United States is $8,910! 2 The government estimates that someone turning 65 years old today will end up paying $120,900 for long-term care. Long-term care insurance is crucial since long-term care is super expensive-and the costs are only going up. ![]() 1 And unless you’ve built enough wealth to be self-insured, long-term care insurance is the best way to make sure you don’t end up running out of money at the end of your life. The cold, hard numbers say 7 out of 10 Americans over 65 will need long-term care, and an estimated 20% of Americans will need it for longer than five years. If you don’t have any creaks in your joints or you’re still the proud owner of a full head of hair, you might be wondering, Do I need long-term care insurance?Ĭhances are you'll end up needing long-term care if you’re planning to get old eventually (and we hope you are). It’s also one of the eight types of insurance you need. For many people, it allows them to protect their nest egg while also living in their home longer. Long-term care insurance also covers things like adult day care services, home modifications and care coordination (or management). Long-term care is defined as any care that is longer than three months. Long-term care insurance covers the cost for a nursing home, assisted living facility or in-home care when you (or a loved one) gets older and starts dealing with health issues. You’ve got questions, we’ve got answers! We’ll dig into who needs long-term care insurance so you can put together a solid plan for your future. Is long-term care insurance really necessary? And how do you know if you actually need it? Will Medicare cover these costs as you age, or can you rely on friends and family for care? ![]() No one wants to think about themselves or their loved ones being unable to live on their own.īut this is likely in your future, so you should take a hard look at how you’re going to pay for it. It’s not exactly something you want to talk about over mac and cheese at the dinner table. ![]()
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