Should you consider LTCI as part of your retirement savings plans?
We have good news about the lifespans of Americans. We are living long than people were, even 10 years ago! However, along with that increased lifespan comes an increased chance that we will require some form of nursing care for an extended period during our lives.
In fact, some experts estimate that 50 to 70 percent of us will need long term nursing care. This could be care in a traditional nursing facility. It could also be assisted living, home health care, or care by a member of the family. Any sort of long term care you choose will have a price tag.
Nursing homes can cost $4,000 a month or more today, and costs are increasing every year. Would your money last long with a bill like that to pay each and every month?
You may save money at an assisted living facility, if you qualify, but they still cost thousands every month.
Of course, even home health care workers must be paid. If you only need somebody to come in for a few hours a week, it may not be that expensive. But what if you need help 24 hours a day? Can you imagine how much it will cost to employ 3 shifts of workers?
And even if you get care from a family member, that individual will have expenses and may be giving up another income. If a family memeber must care for you, they may need to spend more to attend to the rest of their family. If they must leave a job to care for you, it can financially devestate lots of people.
Care for a sick, elderly, or disabled person costs money. This need should be planned for.
And most health insurance do not cover long term stays in a facility. This includes Mediare which only covers short term stays of a few months. The federal Medicaid program can cover nursing, but only after the afflicted person has used up most of the savings it took a lifetime to accumulate. If you want to keep your assets, and have anything to pass on to future generations, it is important to find a way to cover the risk that you will need some assistance in the future. For many people, LTC insurance is an affordable way to provide this financial security.
How much does LTCI cost?
Well, there are so many plans on the market that it would be impossible to give one right answer. Waiting periods and plan maximums vary. Some policies have an adjustment for inflation too. And while some cover any possible type of nursing care, some are more restricted. You need to explore the major insurers in your local area to find out what is available.
One advantage to some of these policies is that they can be tax qualified. This means that the premiums are tax deductible. The plans will be have a lower real cost when you consider the deduction. If you are looking for another tax deduction, this may be something to consider!
Find the best insurance website with more about private long term care insurance cost.