Did you know that seniors turning 65 today have a 70% chance of needing some long-term care as they age? Not surprisingly, long-term care comes with a hefty price tag.1
Nationally, the average cost of a nursing home is over $90,000 per year for a shared room, and the median cost of an assisted living facility is around $54,000 per year. In-home care isn't a bargain either. The median cost of a full-time home health aide is more than $61,000 per year. Unfortunately, most private health plans don't cover long-term care, which may lead to you having to pay out-of-pocket.1
That's why it might be worth considering long-term care insurance. Policies can cover a wide range of services and expenses, including in-home care, rehabilitation, and end-of-life hospice care. Generally, the policies are structured so that you become eligible for benefits once you no longer can perform a set number of activities of daily living—such as bathing, dressing, eating, using the toilet, getting in and out of beds and chairs, and managing incontinence—or become cognitively impaired.2
Several factors affect long-term care insurance costs and availability, including age, health, and coverage amount. Long-term care policies also have expenses and limitations. You should consider determining whether you’re insurable before implementing a long-term care insurance strategy. Any guarantees associated with a policy are dependent on the issuing insurance company’s ability to continue making claim payments.
As your financial professionals, we can help you weigh the pros and cons of long-term care insurance to make the best decision for your unique situation.
If you'd like to learn more about long-term care, please get in touch with our office. We can send you some material and schedule an appointment to review your choices.
1. Forbes.com, February 20, 2023
2. U.S. Department of Health & Human Services, 2023