As time goes on, people everywhere are living longer and receiving better medical treatment. This is great in a lot of ways, but it can be tough when it comes to your finances. What do you do if you outlive your retirement savings and government programs like Social Security and Medicare don’t cover enough of your bills?
This is where long-term care insurance comes in. A long-term care insurance policy works similar to other insurance policies, in that you pay a monthly fee in order to have financial protection if you need to use it. The difference with long-term care insurance is that the majority of us will need to use it at some point during our lives, and likely need it for many years.
The current stats show that 70% of people over the age of 65 will need long-term care at some point. That’s more than two-thirds of the population. Chances are, those numbers will only go up over time as life expectancy continues to rise.
Long-term care costs are already very high and will only continue to rise, too. The median cost of in-home care is currently around $4,000 per month, and a private room in a nursing home can go up to $8,000 monthly. Most people don’t have savings and investments ready to cover these costs, and government programs will only cover so much.
The benefits of long-term care insurance are endless.
Without insurance, you run the risk of spending much or all of your life savings on your long-term care, leaving nothing behind for your loved ones.
With insurance, you will be able to protect your assets. No need to worry that your home or other property will need to be sold in order to pay for your care.
With insurance, there is low risk. No need to worry about your investments being lost in a volatile stock market right when you need them the most.
With insurance, the rates can be locked in place. No need to worry about rising rates that would eventually make the insurance not worth having.
Possibly best of all, long-term care insurance plans come with a variety of options. Even “hybrid” plans are available that blend life insurance and long-term care insurance into a single plan. Certified agents walk you through the entire process as well, making sure that you get the plan you need.
As a wealthy man or woman, you may think you cannot benefit from long-term care insurance, but you would be wrong. Without insurance, you run the risk of spending much or all of your life savings on your long-term care, leaving nothing behind for your loved ones. Long-term care insurance will commonly cost less in the long run than spending out of pocket for long-term care.
Much like car insurance, homeowner insurance, and health insurance, it makes perfect sense to have coverage for your long-term care, especially as you get older. “Self-insurance” by investing can be very risky, and could fail to create enough money for your long-term care even with great market conditions. Spending out of pocket for your care can lead you to spending your life savings, leaving nothing behind for your family.
Long-term care insurance is the best bet you can make on your future. It’s low risk and high reward if you need it. Spend a bit today and have peace of mind that you are protected for tomorrow.