If you develop a chronic illness or become disabled and can no longer care for yourself for an extended period of time, you’ll need long-term care services.
And they aren’t cheap.
The median cost for a home-health aide for an eight-hour day is more than $44,000 a year, while nursing care in a facility with a private room has a median cost of almost $84,000 a year.1 As life expectancies increase, so does the duration of long-term care needs, and the financial burden may end up falling on your loved ones after you’ve run through your own life savings.
The advent of modern medicine has given us a longer lifespan…not care-free one. The longer we’re alive, the more certain will be the need for someone to provide long term care (feed, clothe, bathe, transport, etc.).
Did you know that neither your health insurance nor Medicare would pay for extended long-term care services in the event that you needed them in the future?
Imagine the burden placed on loved ones, emotionally and physically, if they’d have to provide this care on an on-going basis. How would new bills be met?
There Are Basically 3 Options:
1. Pay for it yourself
The average cost of nursing home care is now over $50,000 per year, and rising. Half a million Americans fall into poverty while paying for this. Even wealthier families will usually run out of savings before long. Assuming donations from family, friends or the sale of your assets, would funds be enough to cover increasing expenses for 2 years, 5 years or longer?
2. Rely on the government
Medicare covers a small fraction of long term care, for about 90 days. Medicaid covers more, but requires you to deplete most of your assets and income to meet certain “poverty requirements”. Assuming the government still has resources to support these programs, there’s still the over-looked matter of location and quality of care. Do you prefer a certain climate, environment or proximity to loved ones? Will the care-givers be responsive to your specific needs?
3. Purchase a LTC policy
Planning ahead with a long term care policy can protect you and your family from the burdens of care and paying for needed services. Funds can be adjusted to meet costs for in-home care, as well as nursing home and assisted-living facilities, providing more choices of location and quality of service.
This is the single greatest threat to your estate, and an inevitable challenge to face as you continue to age. However, the solution is fairly simple and surprisingly inexpensive if you do something about it now.
Concerned about paying monthly premiums? We use plans that do not require on-going payments. Contact us and we can show you everything you need to know.