It’s often not too easy for people to contemplate the end of their life, or that of a loved one. It’s also difficult to begin thinking about what may happen (or what they would do) in the event they couldn’t care for themselves properly.
These topics can cause concern and anxiety for many, but like most things in life when that happens, it’s easier to not think about them and hope (or assume) that nothing bad will occur, anyway. Yet millions of Americans require some type of extensive care, often within the comfort of their home, but it can also include nursing home care, assisted living, and other options.
Being prepared for these types of possibilities is essential at maintaining a high quality of life and comfort, especially during those challenging times and that’s where long-term care insurance becomes an integral component for future planning.
“Long-term care insurance will essentially provide reimbursement to policyholders (up to a specified daily limit) for services required with regard to daily care, which can include hiring a home care aide to assist with bathing, toileting, dressing, and even eating (longtermcare.gov).”
While an individual may have relied on an employer provided health insurance policy throughout their career, and though they might have shifted to a different policy, such as a government funded one, they don’t generally provide coverage for these long-term care options.
As noted in the AARP blog, Understanding Long-Term Care Insurance:
“Employer-based health coverage will not pay for daily, extended care services. Medicare will cover a short stay in a nursing home, or a limited amount of at-home care, but only under very strict conditions. To help cover potential long-term care expenses, some people choose to buy long-term care insurance.”
A Common Misconception
One common misconception many people have about long-term care is that Medicaid or other government provisions will cover at least some of these costs. In most situations, an individual who will require long-term care will be required to use up his or her personal assets before any outside support will be provided. That can drain savings accounts, retirement funds, and even force those individuals to sell their home or other assets to pay for this level of care.
How Much Does Long-Term Care Insurance Cost?
There’s no single answer to that question because everyone’s situation will vary. Costs will depend on the person’s age, how much the policy would pay per day if long-term care is needed, the maximum number of days or years the policy will pay out, and more.
The best thing to do is contact an insurance provider to determine the cost of a long-term care policy.
**This website is for informational purposes only and does not constitute a complete description of our investment advisory services. No information contained on this website constitutes tax, legal, insurance or investment advice.**
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